Jobs offering the best super revealed

The jobs with the best superannuation funds have been revealed in startling figures.

Most Aussies just get the mandatory Compulsory Superannuation Guarantee contribution of 10 per cent, which will increase progressively to 12 per cent by July 1, 2025.

But public sector super is often well into double digits, depending on when you started given they are now generally less generous than what they used to be.

And for tertiary education workers, 17 per cent is common.

Aside from switching to a higher rewarding job, one way to boost your super is by salary sacrificing, which involves arranging with your employer to pay some of your wage into your super fund.

“The benefit is that these payments are taxed at a maximum rate of 15 per cent, which is often less than your marginal tax rate,” SuperRatings market insights manager Camille Schmidt told NCA NewsWire.

Canstar’s finance expert Steve Mickenbecker said people should be aware that a salary sacrifice into super, once made, could not normally be withdrawn until retirement.

“They need to be confident that the money sacrificed won’t be needed until then,” he told NCA NewsWire.

“The power of compounding means that money sacrificed into super when relatively young can grow to a substantial sum.”

For more information on salary sacrificing, read this Australian Taxation Office explainer.

Workers can also boost their super by adding their own contributions into their super fund manually using their take home pay then claiming an income tax deduction.

“The cap for these types of (concessional) contributions increased from $25,000 to $27,500 from July 1 last year,” Ms Schmidt noted.

“We … suggest speaking to your fund or a financial adviser you trust around steps to make a tax deduction as it can be complex and the timing needs to be correct for it to be eligible.”

You can also make non-concessional contributions from your after tax income.

“The government also makes a super co-contribution for low or middle-income earners of up to $500, which is automatically paid to your super fund if you’re eligible,” Ms Schmidt said.

“You may be eligible to make a contribution on behalf of your spouse who is not working or classified as a low income earner and claim a tax offset of up to $540.”

She also pointed to mobile apps that allow you to round up the cost of purchases, with the rounded up amount deposited to a nominated account.

“You could then deposit the additional savings into your super by making a personal contribution – every little bit helps,” Ms Schmidt said.

Mr Mickenbecker said banks that currently offered round up accounts or features included Bank Australia, ING, P&N Bank, Up Bank and Great Southern Bank.

“Round up apps such as Wisr are another option,” Mr Mickenbecker said.

“You should expect your savings round up app to be fee free if funds are being directed to a savings account at the same bank, but expect to pay fees for other forms of investment (shares and exchange traded fund portfolios).”

“Another alternative are cashback sites that top up your super, such as Super Rewards and Boost Your Super.

“Simply create an account, link it to your superannuation fund and receive cashback rewards into your super when you shop with participating retailers.”

Most super funds had their own mobile app allowing members to engage with their super and track how their retirement nest egg was progressing, Ms Schmidt added.

Meanwhile, Industry Super Funds is campaigning federal politicians to end what it calls an unpaid super scourge – affecting millions of Aussies – by mandating super be paid with wages.

In its 2021 “Super Scandalous” report, ISA estimated unpaid super affected more than a quarter of Australian employees, diddling them out of billions or dollars and costing each affected worker an average of $1700 per year.

Young workers and those on low wages or working in construction, transport, trades, hospitality and accommodation are most likely to be underpaid super, ISA says.

ISA says the super regime assumes employees are in a position to detect and report that their super has not been paid, but CSG contributions need only be paid quarterly, which means that they are not visible in real time.

“Super is paid on an employee’s ordinary time earnings and can be hard for an employee to calculate because it includes things like shift loadings and commissions,” the report reads.

“Further, an employee’s pay slip will report what SG is payable, not what has been paid.

“Some workers only discover that their super has not been paid when they attempt to claim on their insurance.”

Cashflow problems, poor administration systems and liquidation are key reasons employees don’t pay super.