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.

Are you in the right super funds?

To maximise retirement benefits, investors must be proactive in managing their super, warns Jeff

Money tips for women

With females on average living longer than males, it's important for women to understand their

Clarifying super rules

In July 2009, the Government implemented changes to superannuation concession contributions. With

Super calculators

Most bank websites now include a superannuation calculator. But for an independent comparison of

Missing money

Can you imagine money that is rightfully yours, just sitting somewhere, unclaimed? The Australian Investment

Super investments hold steady

Recent upheaval in the financial markets has half of all Australians concerned but does not

Women’s super gap

ClearView Retirement Solutions is urging women over the age of 55 to look at ways to bridge the

Comparing Super Funds – Online Assistance

Australians are now able to determine which fund their superannuation contributions will go

Salary sacrificing to superannuation

As of 1 July 2009, the Government implemented changes to superannuation concessions. If you're

Cooper on super

The Cooper Review of superannuation was announced in May 2009 as an initiative of the Labor Government

Withdrawing from a super fund

YOURLifeChoices subscriber Guy, would like to know what effect withdrawing money from his wife's

Super the most tax-effective investment for a worry-free retirement

Next to your first home purchase, superannuation is one of the most important investment decisions

1 2 44 45 46 47 48 49

OUR PARTNERS

household capital

TOP STORIES

Back to Top