The long-term savings arrangement that operates primarily to provide income for retirement is known as Superannuation. Superannuation in Australia consists of self-employed, employees and employers, making significant addition to a superannuation fund over a measure of time.

The superannuation fund keeps the contributing amount in trust for the members and invests the amount to increase the funds savings. These savings are then used to deliver benefits to members at the time of retirement or if they suffer a serious disability. Special ATO (Australian Taxation Office) superannuation rules applies to single member only funds, minor members and super funds when a member has died. In case the member dies it is delivered to the member's families according to the ATO superannuation rules.

The superannuation fund savings have lower taxation rate than normal savings if the superannuation fund matches with some specific conditions. This aspect along with the addition of super funds earnings from investment, combine to produce a larger benefit for retirement.