Superannuation
Australians have superannuation, however many of us still find it very confusing. Why do you need it, and more importantly, will it be enough? The answer to this question for many of us is NO, but fortunately there are many benefits of contributing extra money to your superannuation yourself
 For example, you can receive a tax deduction for any personal contributions you make during any one financial year up to $5,000. After this amount, the deduction reduces to 75% which is still an excellent tax deduction. Superannuation also gives you many other options that you can take advantage of to increase your retirement income, such as salary sacrifice and contributing on behalf of your spouse.
The following may be useful information in relation to many common superannuation questions.
- Employer Superannuation
Australians have had superannuation since the 1980s when compulsory employer contributions were introduced. But what is compulsory employer contribution, and will it be enough for you in your retirement? How much exactly does your employer need to contribute to your superannuation? Here's what you need to know:
 A minimum of 9% of most employees' wages must be paid to their superannuation. This is required under the Federal Government's Superannuation Guarantee legislation. Exceptions include employees earning less than $450 per month or employees under the age of 18 and not working more than 30 hours per month.
Additional superannuation contributions can be made in two ways. The first is by salary sacrifice where employees sacrifice some salary in return for additional super contributions by you as their employer. The second is by salary packaging where your employees can pay extra super as part of a salary package, which may also include extra benefits such as a company car.
The Federal Government has implemented Choice of Superannuation Funds legislation, which means employees (rather than the employer) will be able to choose the superannuation fund which best suits their needs. This will also give the employee the choice of investment options, fund managers, levels and insurance cover.
- Superannuation Funds
Superannuation can be invested in a number of different types of funds. They are differentiated by who runs them, and which of the following categories they fall into:
Industry Funds
Superannuation fund for members in a particular industry or industries.
Corporate Funds
Established for the benefit of employees of a particular company or group of companies.
Public Sector Funds
Established by State and Federal governments to provide superannuation for public servants.
Retail Trusts
Often run by insurance companies and/or banks who are responsible not only to members but also to shareholders.
For more information on Superannuation, or any of our financial services, you can ring us on (02) 9680-0131. Alternatively, you can book a FREE Consultation, by using our Online Enquiry Form.
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