Superannuation

The aim of superannuation, since its introduction by the Keating Government in 1992, is to enable all working Australians to accumulate savings to fund their retirement. The most common means of contributing to superannuation is through employer superannuation guarantee contributions (SGC), which by law, must currently be paid at a rate of 9.5 per cent. There are plans to gradually increase this to 12 per cent by 2025.

Australians are encouraged to make contributions to superannuation by favourable tax benefits and many take advantage of these incentives by salary sacrificing to superannuation. This enables an employee to pay an amount of pre-tax salary into superannuation, which when taxed at 15 or 30 per cent, is often less than their own marginal tax rate. These are known as concessional contributions and are capped at $25,000.

Non-concessional contributions can also be made – these come from after-tax income. The current limit on such non-concessional contributions is $100,000 per year, although a scheme exists whereby $300,000 can be made in one year, as long as no other contributions are made in the following three-year period.

Other factors, such as age and hours worked, can determine whether an individual can contribute to superannuation.

Through investment of contributions by fund trustees, individuals hope to see their superannuation fund balances increase by payment of returns on investment and compound interest. As investments can go down as well as up, most people choose a mix of different investment types based on their risk profile.

Victims of crime call for superannuation loophole to be closed

Victims of crime call for superannuation loophole to be closed

Former Australian of the Year leads calls for government to change laws.

Super outlook likely to be worse than many think, says analyst

Super outlook likely to be worse than many think, says analyst

After years of growth, prepare yourself for a loss when you look at this year's super statement.

Explained: The super co-contribution and how it works

Explained: The super co-contribution and how it works

If you make personal super contributions, you may be eligible for this co-payment.

One in five super fund options expected to fail performance test

One in five super fund options expected to fail performance test

Government performance test results expected soon, with SuperRatings predicting 20 per cent of

Super losing value in the stock market crash - but don't panic yet

Super losing value in the stock market crash - but don't panic yet

Financial experts say recent market turmoil won't last forever and not to make any rash decisions.

How to claim tax deductions for personal super contributions

How to claim tax deductions for personal super contributions

If you made post-tax super contributions you may be able to get some of that back.

Stock market fall sends some super fund returns into the red

Stock market fall sends some super fund returns into the red

Global issues are having a devastating effect on the stock market and your super returns.

Super system is failing retirees, says economist

Super system is failing retirees, says economist

Expert supports using super for purposes other than retirement.

When do you have to start withdrawing your super?

When do you have to start withdrawing your super?

Is there an age when you have to start using your super?

An annuity could help you increase your Age Pension

An annuity could help you increase your Age Pension

A lifetime annuity could increase your Age Pension payment.

Friday Reflection: When ‘pension’ is simply the wrong word

Friday Reflection: When ‘pension’ is simply the wrong word

YourLifeChoices member says super fund naming protocol is ‘misleading and confusing'.

How to make sure your employer is paying you the correct super

How to make sure your employer is paying you the correct super

It's estimated employees are missing out on around $5 billion in super each year.

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