8 July 2025
Ask Us Anything is where Child Care Super members can submit their super questions, and our experts will answer some of them in our next newsletter.
You can submit your question using this form.
“I’m 23 and just started a new job. My boss said I have insurance in my super but I can't see it when I login. I’ve only got a couple of thousand $$$ in my account. Can you tell me where I can see the insurance?"
Congrats on the new job!
Your boss was right, there is often insurance in super, but there are also rules that apply to people like you who are under 25 and haven’t yet built up a larger super balance. The rules are there to stop your account from having lots of deductions and paying for insurance that you might not need.
Here’s the details:
When you open a super account, you don’t get automatic (default) insurance if you are under 25 OR have less than $6,000 in your account. You can turn insurance on before you meet these requirements, just give us a call.
If you don’t do anything, the default insurance offer kicks in when your account is over $6,000 and you’re over 25. You can read more about insurance here.
Because you said you have a new job (not a first job), I assume you have received super payments in the past. With that in mind, I suggest checking if you have other super accounts that you could bring together, to save on fees. It could also help you reach the $6,000 balance I mentioned sooner and make you eligible for the automatic insurance cover when you turn 25.
“I have been making after-tax contributions to my super and was hoping to withdraw the amount I’ve put in for a first home purchase. How can I take that money out? Help! This FHSSS thing is confusing!”
First up, let me reassure you that you can withdraw after-tax contributions to purchase your first home. And, because you have already paid tax on that money, there is no additional tax payable when you withdraw the money.
The maximum withdrawal is $50,000 per person plus any associated earnings received on your contributions.
To make it even for everyone, the ATO sets the earnings rate on your contributions (known as the Shortfall Interest Charge or SIC), regardless of which fund or investment option you have chosen. This means the earnings you see in your super account might be different to what the ATO determines to be the interest you receive. The earnings rate changes quarterly, but in recent years it has varied between 3% and 7% a year.
Combining all these rules can be confusing, so let’s look at an example.
Let’s say you contributed $10,000 a year from your after-tax income for 3 years. $30,000 in total.
You can withdraw 100% of this amount.
To make it easy, let’s assume the earnings rate over this time period was 5%, or $1,500 ($30,000 x 5%). Because you were making after tax contributions, there is no additional tax payable. Your total withdrawal amount will be your $30,000 plus the $1,500 in earnings.
You are eligible to do this if you are over 18, have not previously purchased a home in Australia and intend to live in the property you are buying.
To access this money, you need to request a determination from the ATO BEFORE any ownership is transferred to you.
The ATO's website has a lot of information, including the relevant forms to commence the process. You can also read more information from us on the FHSSS.
Good luck with your home purchase! And please, call us if you have further questions.
Got other questions you want answered about your super?
A one-on-one session with a Child Care Super Coach can help you understand your super in simple, no-jargon terms. And best of all, it’s part of your membership, so there’s no extra cost.