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.

ATO falls short in superannuation compliance, report finds

ATO falls short in superannuation compliance, report finds

ATO is under fire for not doing enough about businesses that dodge super payments.

'Middle Australians' missing out on their best possible retirement

'Middle Australians' missing out on their best possible retirement

Paper identifies the product that delivers a more certain future for retirees.

Super funds required to help make your nest egg last

Super funds required to help make your nest egg last

Revealed: The retirees who will benefit most from upcoming changes.

Super 'rort' is costing tax system and helping the wealthy: analyst

Super 'rort' is costing tax system and helping the wealthy: analyst

Superannuation is set up for the rich and changes need to be made, say experts.

Election candidates should focus on super if they want to win

Election candidates should focus on super if they want to win

Whoever wins power needs to make super a priority, says AIST.

Super bounces back for first time in 2022

Super bounces back for first time in 2022

Experts warn inflation may still gobble up funds growth.

Use concessional contributions to grow your super faster

Use concessional contributions to grow your super faster

Using unused concessional contributions to super to build your nest egg.

Australian super funds that earnt a AAA rating

Australian super funds that earnt a AAA rating

Rainmaker rates 28 per cent of Australian superannuation funds as AAA. Is yours one?

Can you pay your super to the grandchildren?

Can you pay your super to the grandchildren?

Lawyers tell what you can - and can't do - with your super in your will.

The super giveaway allowing the already wealthy to amass more

The super giveaway allowing the already wealthy to amass more

Decision to extend this super concession may actually leave some retirees with less.

Majority of Aussies anxious about having enough to retire

Majority of Aussies anxious about having enough to retire

Are their fears realistic or based on misleading estimates from the super sector?

Noel Whittaker tells how super changes could affect you

Noel Whittaker tells how super changes could affect you

Super amendments can offer more investment options to retirees and pre-retirees.

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