Super for beginners, part 5: Is super my money, or the Government’s money?

Q: I never understood the term ‘superannuation’. Is that our money or government money? If it is our money why can’t we do whatever we want with it. Isn’t it illegal to cut our rights when it comes to this matter?

A: I agree with you that the term ‘superannuation’ is confusing.

If you are employed, your employer must make superannuation contributions on your behalf to a super fund. A super account is opened in your name, and those super contributions and the earnings on those contributions belong to you.

You can also choose to make super contributions to your super account. Your voluntary contributions (if any) and the earnings on those contributions belong to you.

The deal with super is: although super is your money, your super account enjoys tax concessions (you pay a maximum tax within the super fund of 15%, in most instances) which means the Government has imposed special rules that mean you cannot access the money until you retire after a certain age, or you satisfy another condition of release. I explain the conditions of release in the article Accessing super early: 12 legal reasons to cash your super.

You can find other articles explaining how super works in the How super works section of SuperGuide.

IMPORTANT: SuperGuide does not provide financial advice. SuperGuide does not answer all questions posted in the comments section. SuperGuide may use your question or comment, or use questions from several readers, as the basis for an article topic that we publish on the SuperGuide website. We will not disclose names or personal information in these articles. Comments provided by readers that may include information relating to tax, superannuation or other rules cannot be relied upon as advice. SuperGuide does not verify the information provided within comments from readers. Readers need to seek independent advice about their personal circumstances.


  1. I was wondering i am looking at buying a home, my husband and i dont have the deposit of what is required, both our parents are no longer around any more, so we cant go into the no deposit home loan scheme. I was wondering can i borrow money out of my super to use at a deposit after all it is going to be an investment in the long run.

  2. It’s your money but the Government needs to lock it up from the time you start working to when your retire.

    Regardless of tax concessions they need to ensure your super dollars are available over a long period of time for other purposes, like supporting Australia’s economy. This is why there is no option to access your super whenever you want and take the tax hit.

Leave a Comment