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.

What are the different contributions you can make to super?

You can grow your super by making extra contributions yourself.

Superannuation co-contributions explained

Super co-contributions help eligible people boost their retirement savings.

Older Australians are paying too much interest on property loans

Expert warns that retirees are paying far too much interest on SMSF property loans.

Government cuts veto power from super bill to pass first hurdle

Super industry still warns legislation likely to cause harm to fund members.

Super death benefits explained

What happens when your super benefit is left to a non-dependant?

Government extends temporary reduction in super drawdown rates

The government is extending the temporary reduction in minimum drawdown rates for super.

How much super taxes are costing your retirement

The superannuation scheme is merely a wolf in sheep's clothing, says policy researcher.

Hume defends controversial super changes as government faces fight

Your Future, Your Super legislation facing an uphill battle from crossbench MPs.

APRA labels funds ‘uncompetitive’ as returns close to best in a decade

Returns are flying and smaller funds praised, yet regulator hellbent on megafunds.

Smaller funds outshine megafunds in retirement quality-of-living stakes

Bigger is better, right? Not necessarily so when it comes to your super fund.

Where super stashes are flying – and where they’re floundering

The Northern Territory's super savings are the lowest in the nation.

Retiree-friendly super top-up measures tipped for Federal Budget

Government courts crucial older demographic with tweaks to super rules.

1 2 3 4 5 50 51

OUR PARTNERS

TOP STORIES

Back to Top