Superannuation is most simply defined as a long-term savings arrangement where money is placed in a fund to provide for a person's retirement.

Superannuation savings are usually made through superannuation funds which are eligible for tax concessions if they meet prescribed standards set down in legislation. Retirement savings may also be made through retirement savings accounts provided by banks.

Contributions for a particular member may be made personally by the member or may be made by the member’s employer for the member. Employers make contributions for employees under the superannuation guarantee scheme, which penalises employers who fail to make at least the minimum contributions required by the superannuation guarantee legislation.

The superannuation guarantee scheme requires employer to make contributions for almost all employees. Employers may also make voluntary contributions — either for employees for whom they are not required to contribute, or in excess of the amount they are required to contribute.