The Best Way to Set-up and Maintain Your Super Fund
By Sam Gooch
Superannuation is a method of financially preparing yourself for your retirement. Both yourself and your employer can contribute to it over time and this money is then invested into a variety of appropriate investments such as shares, property, savings accounts and government bonds.
When you retire, or qualify for your superannuation due to disability or death you will receive the money (less charges and taxes) either as regular payments made periodically, a lump sum payment, or a combination of the two.
The Superannuation Guarantee came into effect on July 1, 1992, making it compulsory for employers to contribute to an employee's superannuation fund.
The minimum amount of the contribution is 9% of an employee's wages. This excludes overtime, fringe benefits and leave loading).
However, not all employees are covered by this “guarantee”. The Superannuation Guarantee Act states that employers are not required to contribute to the Superannuation Guarantee in certain circumstances.
Some of these exceptions include:
• If an employee earns less than $450 per month;
• If an employee works 30 hours per week or less and is under the age of 18;
• If an employee is over the age of 70;
• If an employee is paid to do domestic or private work for 30 hours per week or less.
Can the employer make contributions above the compulsory limit?
Superannuation is a method of financially preparing yourself for your retirement. Both yourself and your employer can contribute to it over time and this money is then invested into a variety of appropriate investments such as shares, property, savings accounts and government bonds.
When you retire, or qualify for your superannuation due to disability or death you will receive the money (less charges and taxes) either as regular payments made periodically, a lump sum payment, or a combination of the two.
The Superannuation Guarantee came into effect on July 1, 1992, making it compulsory for employers to contribute to an employee's superannuation fund.
The minimum amount of the contribution is 9% of an employee's wages. This excludes overtime, fringe benefits and leave loading).
However, not all employees are covered by this “guarantee”. The Superannuation Guarantee Act states that employers are not required to contribute to the Superannuation Guarantee in certain circumstances.
Some of these exceptions include:
• If an employee earns less than $450 per month;
• If an employee works 30 hours per week or less and is under the age of 18;
• If an employee is over the age of 70;
• If an employee is paid to do domestic or private work for 30 hours per week or less.
Can the employer make contributions above the compulsory limit?
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