Superannuation is basically your savings which you put aside only to be used after you retire. In Australia it is mandatory for the employers to pay superannuation. This has been made compulsory to ensure that one has some savings when they retire.
Here are some basics
- Every employer must pay 9.5% of their employee’s earnings into superannuation. For example, if your total earnings for the year is $50,000 then your employer pay $4,500 into your super account.
- The 9.5% does not include performance-related bonuses
- Many employers will offer a salary package including super.
- The rate of compulsory superannuation increases gradually. But you can contribute more towards your superannuation.
- A superannuation funds must comply and meet legal standards. If you want to verify that a fund is complying or not, you may visit the Super Fund Lookup
- The companies running the supper fund usually invest your money. They will offer different investment options. These may include investment in stocks, property, currency and more complex investment products. You should be careful in choosing the right investment as this can bring you a good return.
- You can also have a Self Managed Super Fund. This is usually complicated but if you know what you are doing this may give you the best returns. UBS provides assistance with SMSF and have many happy customers.
The next question that comes in mind is who is eligible superannuation. You must fulfill the following conditions to be eligible
- Must be under 70 years of age
- working either on a full-time, part-time or casual basis and
- paid over $450 (before tax) per calendar month.
- If you are under the age of 18 then you must be working at least 30 hours a week.
As superannuation is mandatory in Australia, it helps Australians to be in a better state during retirement than in many other countries where superannuation is not compulsory.
If you have any further enquires or want assistance with Self managed Super Fund SMSF then feel free to call us on +61 2 9534 8744 or write to us via our contact us page. You can also communicate with us via our facebook page @ubsriverwood