Ask an Adviser

Category » General info about Super

There were 18 articles found in this category:

• Q1 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

• Q2 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

• Q3 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

• Q4 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

• Q5 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

• Q6 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

• Q7 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

• Q8 How safe is my super?

  Your super is held in ‘trust’ by your super fund, which is the ‘trustee’ of your money. This means the trustee must hold that money on your behalf and must always act in your best interests Superannuation is a highly regulated area. Super funds must comply with many laws ... Read more

• Q9 How do I lodge a complaint about my super?

  If you have a complaint about some aspect of your super, whether it is about investment returns, fees, errors in your statement, confusion about your fund’s terms and conditions, or unreasonable delay in making disability payments, your first port of call is your fund. In writing, you sho ... Read more

• Q10 Am I eligible for super if I am a contractor?

  You are considered to be an ‘employee’ for Super Guarantee (SG) purposes as a contractor if: You are remunerated wholly or principally for your personal labour* and skills. You must perform the contractual work personally, and; You are paid by reference to hours worked, rather than ... Read more

• Q11 I have several super accounts, how can I combine them?

  Changing jobs can make it hard to keep tabs on your super. It can mean that you have several super accounts. Each account means you pay fees, such as administration and life insurance cover costs. Ideally, having only one fund to house your super, and therefore, paying one lot of fees and one l ... Read more

• Q12 Can I take my super with me when I change jobs?

  Yes, but read this checklist first. Retirement benefits Some funds, especially defined-benefit funds, may limit or reduce what you can transfer. In those circumstances, it may be better to stay in the fund until you retire. Insurance benefits Make sure you stay covered. Will cover be automatic ... Read more

• Q13 What is the difference between investment and fund choice?

  Fund choice This refers to which fund you choose to receive super contributions. Where choice is available you may choose an industry superannuation fund, a retail or commercial fund, or a corporate fund set up by your employer. Fee structures among funds vary. Investment choice This refers to ... Read more

• Q14 How do I choose a fund?

  There are different types of super funds, but they can generally be divided into three groups: Industry superannuation funds (such as Industry Super Funds), which are typically run only to benefit members and, on average, have lower fees* than commercial or retail superannuation funds. Employe ... Read more

• Q15 What is fund choice?

  Many employees are able to choose their own super fund into which compulsory contributions are paid, unless: Your super is paid under a state award or industrial agreement. Your super is paid under certain workplace agreements, including an Australian Workplace Agreement (AWA) and enterprise o ... Read more

• Q16 I don't think my employer is paying super into my account. What should I do?

  If you’re concerned about unpaid Super Guarantee contributions you should: Make sure you’re eligible to receive the SG Check your super statement Call your super fund Talk to your employer, ask them how often they are paying and into which fund. If you have completed the above ste ... Read more

• Q17 What is the difference between an industry fund and a retail fund?

  Industry funds are “all profits to members”; as a result they tend to charge low fees, in some instances much lower than retail funds. As they focus on keeping fees as low as possible they do not pay commissions to financial advisers. Recently, industry super funds have been enhanci ... Read more

• Q18 Am I eligible to receive the Super Guarantee?

  If you’re employed and earn at least $450 (before tax) per month, your employer is required to make regular superannuation contributions on your behalf equal to 9% of your ordinary time earnings. The 9% Superannuation Guarantee Contribution (SGC) is the minimum requirement established by l ... Read more