What happens to your super account after redundancy?

In most cases, your super account stays open after redundancy. Your existing balance will remain invested, and fees and any insurance cover linked to your account may continue to apply.

What may change is the flow of new contributions. If you are between jobs, employer contributions will usually pause until you start work again. This can make it a good time to review your account, understand any insurance cover you have through super, and make sure your contact details are up to date.

Can you access your super if you are made redundant?

Redundancy generally does not allow you to access your super early. Super is designed to help fund your retirement and is usually preserved until you meet a condition of release, such as reaching age 65, or ceasing an employment arrangement after age 60.

There are limited circumstances where early access may be available, such as severe financial hardship or compassionate grounds, though the rules are strict.

Practical steps if you’ve been made redundant

Check your final payslip and make sure ordinary wages, unused leave, notice payments and redundancy payments are clearly itemised.
Confirm whether any payment in lieu of notice has attracted super, if applicable.
Check your super account to make sure all employer contributions up to your final day have been received.
Review your insurance through super, especially if contributions may stop for a while.
Make sure your contact details are current so your fund can reach you with important updates.
Consider whether voluntary contributions are affordable while you are between jobs. Remember, salary sacrifice contributions are an arrangement between you and your employer – so if you’ve been making them, they will stop.
Seek professional advice if you are unsure about your redundancy payment, tax treatment or super entitlements.

The bottom line

In Australia, a genuine redundancy payment generally does not attract super because it is not usually treated as ordinary time earnings. Your employer should still pay super on ordinary wages or salary earned up to your final day. Some payments, such as payment in lieu of notice, may attract super depending on how they are classified. Your super account usually stays open after redundancy, but employer contributions generally stop until you start working again.

Redundancy and super: what happens to your super if your job ends?