What is super?
Superannuation is a tax-effective way of saving for your
retirement. Even though superannuation may seem complex, the idea
behind it is very simple - it provides you with a way to save money
now so you can enjoy a comfortable lifestyle when you
retire.
Money can be paid into your account by you, your employer,
your spouse and sometimes even the federal government. These
payments are called 'contributions'. Your superannuation fund then
invests this money to help it grow.
How much is compulsory super?
If you're working, your employer is required to contribute
at least 9% of your salary to your superannuation fund on your
behalf, providing you're eligible (see contribution rules below).
Employers must make these contributions (known as 'Superannuation
guarantee' or 'SG' contributions) at least every
quarter.
Superannuation contribution rules
| Age |
Contributions from your employer |
Contributions from you |
| Under 65 |
Under Superannuation guarantee (SG) legislation, your employer
must contribute at least 9% of your earnings to your superannuation
account if you're between 18 and 69 years old (inclusive) and, in
most cases, earn at least $450 in a month (before tax).
If you're under 18, your employer has to pay superannuation for
you if you work 30 hours or more per week and earn at least $450 in
a month (before tax).
Salary sacrifice is classed as an employer contribution because
it comes from your before-tax pay and your employer pays it
directly to your superannuation account. For some employees, salary
sacrifice can be very tax effective. Check with your employer if
this is available at your work place or read more about salary sacrifice here.
|
You can make contributions by direct debit, BPay, cheque or
payroll deduction. Find out more about voluntary contributions
here. |
| 65-74 |
Your employer can contribute to your superannuation if:
- The contributions are mandated employer contributions required
by law or applicable award or workplace agreement; or
- You have been gainfully employed at least 40 hours over 30
consecutive days during the same financial year in which the
contributions are made.
Please note: SG contributions are not allowed if you are aged 70
or older.
|
You can make contributions if you have been gainfully employed
at least 40 hours over 30 consecutive days during the same
financial year in which the contributions are made.
|
| 75 and over |
Employers can only contribute to your superannuation if the
contributions are required by law or applicable award or workplace
agreement. |
You cannot make contributions to your superannuation once you
reach 75. |
How much super do I need?
A recent study found that the minimum employer contributions of
9% are insufficient by themselves to provide anyone with their
expectations of a comfortable living standard in retirement*. The
good news is that there are a number of ways you can boost
your superannuation so you have more for your retirement.
If you're an Intrust Super member, you can also access a free
Statement of Advice through Super360°. This personalised plan can
help you decide how to invest your superannuation and how much to
contribute to meet your retirement goals. Log in or register for Member Access now
to access your free superannuation plan.
*Rice
Warner Actuaries, 2010.