To quote ASIC, "Superannuation is a tax effective way to save for your retirement. It's similar to a managed fund where your money is pooled with other members' money and invested on your behalf by professional investment managers. Generally you will not be able to access this money until you retire".
This latest information to add is the Federal government has stepped up it's game to provide assistance to first home buyers trying to save money in a tax effective manner to have a deposit for a home. This can also apply to those who previously lost a home due to extreme financial hardship, giving them a second chance also.
How this is achieved, is by allowing you to save through your superannuation which has a higher growth and return on savings than any of the bank deposit accounts in Australia! You will also get a tax break and will not be penalised when you draw down for the actual deposit( follow the steps please). Being a government supported initiative, the accompanying documents will make it easy to prove to any lender of genuine savings. Click the link here to read more, using a broker( like me) to follow up and complete your home purchase transaction is essential if you want this to go smoothly.
Another good thing about superannuation with most of the right Super funds, when you have a severe financial crisis. You can apply for partial release of the fund to pay mortgage arrears until you get your life back in order. You do have to exhaust all other options first and have enough put away to offset the applicable tax in that circumstance. But to me, that is pretty amazing also. Some superannuation funds provide life insurance, income protection, TPD and life insurance all in one place.
With new changes to lending policies, a lot banks and lenders are requiring that you have plenty of superannuation to ensure that you have enough to meet your loan obligations if the loan may extend into retirement. Keeping funds in your superannuation protects it from bankruptcy and ensures you have an income stream when retiring. All these are pretty good reasons to make sure you contribute to your superannuation.