Super 101 for Creatives: A Guide to Your Retirement Piggy Bank
The jargon-free edition to understanding the language of your future money.
Hey there,
I want to start this newsletter with a huge thank you to everyone who liked, shared and reached out after my last newsletter. I cannot tell you how much it meant learning how these newsletters are helping and/or getting you thinking about your financial futures. The reach of the last newsletter thanks for you tripled! If you can keep sharing, I'd greatly appreciate it. Let’s get our community together on this!
Based on your messages, this newsletter is going to hopefully help a lot of you (Australian focused readers) understand how superannuation (or super) works and why it’s a big deal for your future. You let me know that you feel super can feel like a sea of unfamiliar words and numbers. And if you’re a creative person focused on gigs, passion projects, or irregular income, it might all feel a little… far away, confusing, or even irrelevant.
That’s why this edition is here to translate the financial mumbo jumbo into everyday language. I’m going to (hopefully) explain what the common super terms mean, and how they actually affect your life now and in the long run.
No shame. No jargon. Just real talk.
What is Superannuation—and Why Should Creatives Care?
Superannuation (or “super”) is Australia’s retirement savings system. It’s like a long‑term investment account where you don’t actively touch too much—starting by your employer putting money into a super fund on your behalf. Over time it grows through investment returns, and you access it only when you retire (or meet special conditions).
How Super Works: Employer Contributions + Personal Choices
Employers must pay a Superannuation Guarantee (SG): 12% of your ordinary earnings from 1 July 2025
You can also add extra money:
Salary sacrifice (pre-tax contributions).
Personal contributions (after-tax).
Government co-contribution for low-income earners - creatives this might be for you!
These are treated as concessional contributions, meaning they are taxed at 15% in the fund (or 30% if your income exceeds ~$300,000). More on this below.
Why It’s Like Investing—and How You Can Choose Where the Money Goes
Your super isn’t locked into a single investment. Most funds let you pick an investment strategy—similar to choosing shares or managed funds (as I covered in last week's newsletter). You can switch strategies if you want at any time.
Investment Options Explained
Your super fund gives you choices on how your money is invested. These choices range from safe to risky, like:
Conservative – lower risk, but lower returns (slow growth).
Balanced – medium risk, medium returns (popular default option).
Growth/High Growth – higher risk, but potentially higher returns (more suitable if you're younger and have time to ride out any ups and downs).
You don’t have to be an investment expert—you can choose an option based on your comfort level or time until retirement.
For creatives, that also means you can invest in ethically aligned or sustainable options, or higher‑growth portfolios if you're younger and want to maximise for retirement.
Super Contributions & Tax Benefits – Explained Simply
Super Guarantee (SG)
Employers must pay 12% (as of July 2025) of your ordinary earnings into your super.
What it means: If you’re an employee—or even a contractor paid mainly for your labor—your employer must pay this extra amount into your super account, on top of your wages.
Salary Sacrifice
You can ask your employer to put part of your pre-tax pay into super instead of your bank account.
What it means: This reduces your taxable income now, and helps grow your retirement savings. It’s a smart move if you want to pay less tax while investing for your future.
Concessional Cap
You can contribute up to $30,000 per year in before-tax contributions (this includes super guarantee + salary sacrifice).
What it means: There’s a limit to how much you can put into super at the lower (15%) tax rate each year. Anything above this cap could be taxed at a higher rate.
Unused Cap Carry-Forward
If you haven’t used your full concessional cap (above) in previous years, and your total super is under $500,000, you can catch up.
What it means: You can “roll over” unused contribution space from the past 5 years, which is handy if you didn’t earn much before or are now in a better position to invest more.
Government Co-Contribution
If you earn under a certain threshold and make after-tax contributions, the government may match up to $500 per year.
What it means: It’s free money for low-to-middle income earners who add to their super. Check the ATO website for current income limits to see if you're eligible.
Partner Contribution to Super
You can contribute to your partner’s super and get a tax offset of up to $540 if they earn less than around $40,000/year.
What it means: If your partner is earning little or no income (e.g. staying home with kids), you can help grow their super and reduce your tax at the same time. It supports long-term financial balance in your relationship.
Spouse Contribution Splitting
You can transfer up to 85% of your concessional (before-tax) contributions to your spouse’s super account.
What it means: If one partner takes time off work (like for parenting), this helps keep their super growing. It also spreads retirement savings more evenly between both partners—great for long-term planning and potential tax advantages later in life.
Why Should I Have Only One Super Account?
When you work multiple jobs, especially as a freelancer or contractor, you may end up with multiple super accounts without even knowing it.
That’s a problem because:
You’re paying multiple sets of fees.
Your money is spread out and not working together.
You might be paying for duplicate insurance you don’t need.
Fix it: Log into myGov (linked to the ATO), see all your accounts, and choose one to roll all the others into. It’s free and super simple to do.
Why Compare Super Funds?
Not all super funds are equal. Some charge high fees, invest poorly, or just don’t perform well. Others give you strong long-term returns with low fees and ethical investment options.
Every year, super funds publish their annual performance—this is basically a report card showing how much money they made (or lost), what they invested in, and how much they charged you.
You can compare funds using free government tools like YourSuper on the ATO website.
How to Review Your Super
Visit myGov and view all super accounts (find stapled or multiple accounts).
Check your fund’s annual report, investment options, and fees.
Compare with other funds via public performance tables (e.g., Industry vs. Retail funds).Consider your investment option: example not financial advice: you could choose growth if you’re younger, conservative if close to retirement.
Use the YourSuper online comparison tool to assess net returns and fees.
Why Freelancers Should Prioritise Super Contributions
Contributing to your superannuation as a freelancer or someone on a variable income is crucial for building long-term financial security, especially since you're not automatically covered by employer contributions like traditional employees.
Making regular, even small, personal contributions—whether monthly or after receiving large payments—can significantly grow your super balance over time thanks to compounding returns. It also helps you take advantage of potential tax benefits, such as deductions on personal contributions or government co-contributions if you're eligible. Being proactive about your super means you're taking control of your future, ensuring you have a more comfortable retirement, even without the stability of a fixed paycheque.
Superannuation for Freelancers & Gig Workers: What You Need to Know
Super isn’t just for 9-to-5 employees. If you're freelancing, doing contract work, or earning through gigs, understanding how super works is a vital part of your financial literacy—and your future.
When Should Super Be Paid?
As of July 2022 in Australia, if you’re paid $450 or more in a calendar month, and you're over 18, you may be entitled to super, even as a contractor—if the nature of your work is similar to that of an employee.
You should receive 12% (as of July 2025) on top of your base rate as super if:
You’re being paid mainly for your labor
You work under a contract for service
You have limited control over how the work is done
Tip: Even if you're invoicing as a sole trader or under an ABN, clients may still be legally required to pay you super if you meet the criteria above.
How Do I Invoice for Super?
If you’re entitled to super:
State your rate + super clearly in your contract or invoice.
Provide your super fund details to the payer.
If they don’t pay it, you can report them to the ATO (Australian Tax Office).
If you’re not entitled to employer-paid super, consider making voluntary contributions. It’s tax-effective and boosts your retirement savings.
Check out this Creative Australia article for more information:
Why Unlocking Super Early Feels Tempting—but Isn’t Wise
Many creatives feel disconnected from their super, longing to access it now for creative tools or life expenses. But super is designed for long-term growth—compounded over decades—and early access is typically taxed heavily or legally restricted. Trust that the money you let grow now can fund your creative life later.
Average Super Balances in Australia (2025)
Source: ABS data via Australian Retirement Trust, based on figures published as of mid‑2025
These figures show averages—but averages can be skewed by a few very high balances. For a clearer picture, the median balance for people aged 60‑64 was $205,000 for men and $154,000 for women according to Review My Super.
How the World Sees Australian Super—and How It Stacks Up
Australia’s compulsory super system is one of the most extensive in the world. It’s credited with helping narrow wealth gaps and ensuring more equitable retirement savings. In places like the USA, retirement often relies on voluntary 401(k) or IRA accounts, and government pensions play a smaller role. The UK has auto‑enrolment into workplace pensions, but employer contribution levels tend to be lower than Australia’s mandatory Super Guarantee.
Help strengthen our creative community—share this newsletter and let’s grow our financial literacy together, so every creative can thrive with knowledge, confidence, and support.
Back in my gig-hopping twenties, I somehow ended up with five or six different super funds (yep, really). Every new job handed me a form, and I just filled it out, no questions asked. No one ever explained what super actually was, why it mattered, or that having multiple accounts was quietly draining my future like a sneaky leech. Fast-forward to my early thirties, and I finally pieced it all together—consolidated my accounts, mourned the fees and lost growth, and started treating super like the long-term bestie it is.
As I write this in July, my wife and I are doing our annual "super check-in." Our fund’s returns dipped a bit this year, so we’re considering whether it’s time to make a move. Just a reminder that your future-you deserves some love too—even if it's just 15 minutes a year with a calculator and a cuppa.
Remember super might feel distant or confusing—but think of it like a creative project: you choose the style (investment option), feed it regularly (contributions), watch it grow over time, and refine it when things change. You don’t need to become a finance guru—just consolidate your accounts, check your fund’s performance each year, and stay aware of how contributions and taxes work. Over time, you’ll be creating a secure future that gives you freedom to focus on your art now.
If you’re feeling overwhelmed, start simple: log in to your super account this week, check your balance, and maybe consolidate. That’s your first step in managing your future, on your terms.
Wishing you creative growth—both in your art and your wealth!
Thanks for taking the time to tune in. It means a lot!
Catch you in the next one,
Ronnie
P.S. I’m always here to chat. I’d love to hear if you have any topics you’d like me to cover. Get in touch! Let’s start the conversation.