In the 2010-11 Federal Budget the government announced future changes to super. These changes, if passed by parliament, will change the information on this page. For a summary of these changes, refer to Changes to super.
Superannuation (otherwise known as super) is a way of saving money to provide benefits for:
When you retire;
If you become an invalid; or
Your beneficiaries upon your death.
Most people begin saving super when they start work and their employer starts paying super for them.
To make the most of your super it helps to understand:
Employer contributions; and
Growing your super.
Employer contributions
In the 2010-11 Federal Budget the government announced future changes to super. These changes, if passed by parliament, will change the information on this page. For a summary of these changes, refer to Changes to super.
Your employer must pay super for you if you are eligible. To be eligible you must be:
Aaged 18 years or over but under 70 years of age; and
Paid at least $450 (before tax) in a calendar month.
If you are under 18, you are eligible if you meet the additional requirement of working more than 30 hours a week.
If you are eligible for super, your employer must pay a minimum of 9% of your earnings for your ordinary hours of work into your super account each quarter. These payments are also called super guarantee payments.
For more information, refer to super guarantee – individuals.
Super funds and retirement savings accounts
Your employer contributions must be paid into a:
Complying super fund; or
Retirement saving account.
Super funds are managed by trustees. Each fund has its own rules but must also follow government rules, designed to ensure your super is properly managed. Funds that comply with these rules are called complying super funds.
Retirement savings accounts are not super funds but operate under similar rules. Just like complying super funds, they accept super contributions and provide benefits when you retire, become an invalid or paid upon your death. Approved financial institutions offer these.
Choosing your fund
Generally, you can choose the super fund you want your super contributions paid into as long as it is a complying super fund.
A complying super fund is a fund that meets certain government rules. ATO recommend you confirm with the fund’s trustee that your fund complies.
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Do not provide a complete or authoritative statement of the law;
Do not constitute legal advice by Net Lawman;
Do not create a contractual relationship;
Do not form part of any other advice, whether paid or free.
