Superannuation in Australia
Superannuation is an investment designed to provide money for your retirement.
Most people start superannuation when they start work because their employer has to pay contributions.
You can choose to top up the funds out of your own pocket. If you are self-employed you can choose
whether or not to have superannuation.
Your superannuation can grow to be a significant asset over your working life. You
benefit from saving regularly over many years, your superannuation fund makes the savings work for
you by investing them, and your money is generally taxed more lightly than other forms of investment.
Your superannuation fund may also offer life insurance cover and disability insurance.
We provide superannuation advice by a
CERTIFIED FINANCIAL PLANNERTM (CFP®)
on a fixed price fee for service basis.
Employer Contributions to Superannuation
Your employer will pay superannuation contributions on your behalf unless you are
exempt or you are self-employed. This contribution is called the Superannuation Guarantee. It is
compulsory for most employees.
If you are eligible for the Superannuation Guarantee, your employer's compulsory
contributions must be equivalent to at least 9% of your earnings. For example, if you earn $40,000 a
year, your employer is to put at least $3,600 a year - or $300 a month - into your superannuation.
Some employers may contribute more to your superannuation, but this depends on the terms of your
employment.
You can also add your own money to your employer's contributions. You may be able
to do this through what is called salary sacrificing. This means that you choose to take less salary
and have your employer contribute the amount you don't take added to your superannuation. As the
salary you sacrifice comes off your gross salary, before you pay tax, you may be able to save tax
this way. This tax saving comes about because, for most people, the tax saved on the forgone salary
exceeds the tax that is paid when the equivalent amount is contributed to superannuation.
Personal Contributions
You can also choose to make personal contributions to your superannuation from your
net income after tax. If you do, you may be eligible for the Government Co contribution which the
Australian Taxation Office calculates and pays, based on your tax return and information received
from your superannuation fund.
If you are self-employed, you can have superannuation and you may be entitled to a
tax deduction for your contributions.
It is also possible to contribute to your spouse or partner's superannuation
and you may be able to claim a tax offset if they earn nothing or have a low income.
As a
CERTIFIED FINANCIAL PLANNERTM (CFP®)
I can provide you with advice on Superannuation, Self Managed Superannuation Funds, SMSF, Superannuation
Funds and Superannuation Calculators.
Please go to our
CONTACT US page to submit an enquiry for advice.
