Obviously that shouldn't be happening, but in any case Software Update only updates the existing system, and you are using the highest version of Snow Leopard. If your computer is compliant with the requirements, you can upgrade to Yosemite which is available free in the App Store in Applications. You will only be able to download the installer if your computer can handle it. Otherwise the earlier system Lion is available in the Online Apple Store for $19.99 - you will get a code to allow downloading from the App Store, but check your computer's compatibility first.
The requirements for Lion are:
- Mac computer with an Intel Core 2 Duo, Core i3, Core i5, Core i7, or Xeon processor
- 2GB of memory
- OS X v10.6.6 or later (v10.6.8 recommended)
- 7GB of available space
The requirements Yosemite are:
- OS X v10.6.8 or later
- 2GB of memory
- 8GB of available space
and the supported models are:
- iMac (Mid 2007 or newer)
- MacBook (Late 2008 Aluminum, or Early 2009 or newer)
- MacBook Pro (Mid/Late 2007 or newer)
- Xserve (Early 2009)
- MacBook Air (Late 2008 or newer)
- Mac mini (Early 2009 or newer)
- Mac Pro (Early 2008 or newer)