Superannuation

As you know, superannuation is money saved and invested during your working life, for you to live on in retirement. It forms part of the Australian Government's 'Three Pillar System' for retirement savings. The three components (or 'pillars') are:

1. Compulsory superannuation
2. Voluntary savings
3. Government pension (known as the Aged Pension).

In Australia, it is compulsory for employers to contribute to the superannuation savings of most of their employees. Employees under 70 years of age who earn $450 or more in a calendar month receive superannuation contributions from their employer

Employer contributions are called Superannuation Guarantee (SG) contributions. SG contributions are currently the equivalent of 9% of ordinary time earnings and must be paid into a complying superannuation fund on a quarterly basis. This money is not taken out of an employee's wage or salary: it is paid in addition to the wage or salary. Employees can also make their own personal contributions to their superannuation savings.

There are many rules that regulate and protect your superannuation.

Superannuation is likely to be one of the largest assets you will acquire. It is one of the most tax effective ways of investing for your future financial needs. Over time, superannuation contributions should develop into a large portfolio that earns income and capital growth for your retirement.

AS Partners provides professional advice and support to employers and individuals with superannuation planning and management.

For more information please contact us