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Category » Superannuation

There were 41 articles found in this category:

• Q1 When can I access my super?

  Members who have attained Preservation Age and continue to work and do not establish a non-commutable income stream can only access their superannuation when they: Retire permanently from the workforce; or Have reached 60 years of age and cease employment with one employer (they do not have to ... Read more

• Q2 What are the before-tax salary sacrifice limits?

  Concessional contributions (paid by your employer, such as SG and salary sacrifice) are capped at $25,000 a year for persons under the age of 50 and $50,000 for persons who are 50 or over on the last day of the financial year (2011-12). All contributions that exceed the cap will be taxed at the ... Read more

• Q3 How much can I contribute to super?

  This depends on your age and whether the contributions to your super fund attract tax concessions or not. Concessional contributions An employer, or in certain circumstances the contributor, can claim this type of contribution as a tax deduction. You pay 15 per cent tax on these contributions t ... Read more

• Q4 Is there a limit on the amount that can be salary sacrificed to superannuation?

  Some employers are unenthusiastic about packaging salaries for employees covered by an award if it would result in income payments dropping below the award rate (it may be possible to negotiate a Workplace Agreement or a Certified Agreement that will allow more flexibility in this regard). The G ... Read more

• Q5 Should I sacrifice salary into super?

  Super offers considerable tax advantages as a form of saving if your marginal tax rate is above the super contributions tax rate of 15 per cent. If you are earning more income than you need at present, or are in a high marginal tax bracket, you can obtain a tax advantage by sacrificing a portio ... Read more

• Q6 What is a Government Co-contribution?

  Members who make after-tax contributions to their super account may be eligible to receive a payment from the Government into their super, which is called a Government Co-contribution. After-tax contributions are contributions that members make from money they have available after paying income ... Read more

• Q7 If I face financial hardship can I access my superannuation?

  The government has strict rules that govern the release of superannuation money on the basis of financial hardship. The financial hardship provision is intended to permit the release of superannuation to relieve an immediate difficulty. The threshold rule for accessing super in this circumstance ... Read more

• Q8 How does super become 'lost'?

  Superannuation generally becomes ‘lost’ if you have recently changed jobs, had more than one job at a time, moved house or changed your name, and you forgot to notify your super fund. Super can also become ‘lost’ or ‘unclaimed’ if your fund has been unable to ... Read more

• Q9 How can I contribute to my super account?

  A range of options are available to make contributions to your superannuation account. You can draw a cheque and send it to your local office for processing. You also have the option of visiting your local office to make payments from your cheque, savings, or credit accounts, through the use of ... Read more

• Q10 How am I currently invested?

  If you have never changed investment options within your superannuation account, you will be invested in the default option, which is the option for those members who have never exercised investment choice. You have the ability to change investment options at any time, however, a switching fee ... Read more

• Q11 Why should I be concerned about super fees?

  Fees affect your super in two ways: They directly reduce the amount of super in your account. They reduce future earnings on your super account. It is important to notice how much you are paying in fees because super is generally a long-term investment and fee differences that might look sm ... Read more

• Q12 I’m not working, but can I contribute to super anyway?

  The simple answer is yes, provided you are under 65. However, you can contribute to super after reaching 65, if you are under 75 and meet the work test. The test involves you working at least 40 hours in 30 consecutive days during a financial year. The test must be undertaken before any contrib ... Read more

• Q13 Why does my 15-year-old get super?

  A 15-year-old could qualify for super payments for several reasons, including through meeting the Super Guarantee (SG) requirements or via an industrial award or agreement. If a person is under 18 and works more than 30 hours a week and earns $450 or more a month, then they qualify for the 9 pe ... Read more

• Q14 Should I borrow to put money into super?

  Before you borrow any money from anyone you should carefully consider how much interest you will pay, whether you can afford to pay it and whether it is worth borrowing that amount of money at that cost for the expected return. Borrowing money for investment is only worthwhile if the bottom lin ... Read more

• Q15 How much of my own after-tax money can I put into super?

  The maximum non-concessional (after-tax contribution limit) is $150,000 a year, or $450,000 averaged over three years on a ‘bring-forward’ basis. People aged 65 or over are able to make after-tax contributions of up to $150,000 each year as long as they satisfy the work test. Non-co ... Read more

• Q16 I have reached preservation age and am still working – can I access my super?

  You may be able to access your super under the Government’s Transition to Retirement (TTR) provisions. These measures encourage middle-aged and older workers to remain in the workforce, even if on a reduced working hours basis. They recognise that they may want to top up their reduced pay ... Read more

• Q17 Is there an age when benefits must be taken?

  No. You can keep your benefits in your super accumulation fund indefinitely, taking as little or as much of their benefits as you choose. If you choose to take your benefits in pension form, then earnings within the pension phase are tax-free. Earnings within the super accumulation phase are su ... Read more

• Q18 Can my industry super fund accept UK pension transfers?

  If you have a UK pension you can now transfer it to Australia. The UK will tax the funds differently depending on whether the Australian super fund is a Qualifying Recognised Overseas Pension Scheme (more commonly referred to as a QROPS). Some industry funds (e.g. CARE Super) are QROPS funds. Y ... Read more

• Q19 What do I need to consider when looking for a Financial Planner?

  A good Financial Planner will be able to answer these questions promptly and listen to any concerns that you may have: How long have you been giving formal advice and what are your qualifications? Do you get paid any commissions, or other financial benefits for recommending products or super ... Read more

• Q20 How can I tell if my super is working for me?

  Look at the statement you receive from your fund and you should be able to find an opening and closing balance in your account. There will be a difference between the two figures and that’s because transactions happen during the year, where the money goes in and the money goes out. The di ... Read more