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.

Spend all your super, Treasury implores retirees

Super funds urged to develop products that help retirees spend down their balances.

The top 10 performing super funds of 2020-21 revealed

Last financial year was massive for super funds, but some funds did much better than others.

Experts call for end to generous super tax concessions

One Australian self-managed super fund has hoarded $544 million in retirement savings.

money, superannuation, retirement, finance,

The key areas that will show whether your fund is the best fund for you.

Super funds have only a 50-50 chance of passing performance test

New study finds the benchmark for the Your Future, Your Super test could be too high.

Superannuation changes could put future performance at risk

Fears Your Future, Your Super reforms will lead to less competition.

Did your super deliver a record return? You should worry if it didn't

You should have been rewarded with record returns from your super fund last financial year.

Noel Whittaker on tax cuts, super and state governments

Finance guru Noel Whittaker exposes sneaky moves in the Federal Budget.

Revealed: Australian towns with the biggest retirement nest eggs

ASFA analysis shows the states with the most to gain from super increase.

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.

1 2 3 4 5 6 7 8 53 54



Back to Top