Superannuation
Superannuation is a means of investing toward retirement.
Employers and employees can both contribute to superannuation in Australia ... and contributions are typically invested in the stock market, bonds, real estate, or other approved investment vehicles.
The money invested is subsequently paid to the member (or to the members' beneficiaries) on retirement, disability or death of the member either as a lump sum or as a pension or both.
Superannuation Guarantee
The Superannuation Guarantee came into effect in 1992, requiring an employer to contribute toward an employee's retirement through superannuation.
The Superannuation Guarantee (Administration) Act 1993 prescribed the employer contributions as a percentage of it's staff wages.
Employers are not required to contribute in some circumstances, e.g. for very low income earners, young workers not working full-time and workers over 70 years of age.
Employers may choose to contribute a higher amount than that prescribed as a means of employee incentive or reward or as part of a salary package.
There are some limitations on the tax deductibility of employer contributions for a given member and, therefore, professional advice should be sought before entering into these arrangements.
There are significant benefits in members saving toward their own future and Superannuation fund members may consider making contributions to superannuation in addition to employer contributions.
Individuals considering making personal superannuation contributions should seek professional advice.
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Financial News & Information
| MetLife Wins Coveted Superannuation Fund Insurance Contract Fri, 26 Apr: In a strategic move shaping the landscape of group insurance relationships, UniSuper, one of Australia's substantial superannuation funds, has announced a major shift in its insurance mandate. The current incumbent, TAL, will pass the baton to MetLife Insurance after an extensive selection process aimed at enhancing member services. - read more
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| Treasury Oversight: Unclear Impact of Super Cap Limit Wed, 24 Apr: The recent disclosure by federal Treasury officials spotlighted a lack of comprehensive analysis concerning an impactful superannuation policy shift. According to internal sources, the financial repercussions associated with the introduction of a $3 million cap on superannuation funds, notably the long-term effects and the number of individuals impacted, have not been fully examined. - read more
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| Farm Sector at Risk from Proposed Superannuation Taxes Tue, 23 Apr: The recent dialogue on the taxation of unrealized asset gains has engendered a wave of concern in the agricultural sphere. The heart of the matter lies within the Government's intention to implement a superannuation tax reform, a move that, according to the National Farmers Federation (NFF), could unintentionally press farmers into a corner where they would have to dispense with their land to furnish tax payments. - read more
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| Australian Retirement Goals Exceed Official Guidelines Mon, 22 Apr: Recent studies suggest that the expectations of Australians regarding retirement savings significantly overshoot the figures endorsed by retirement experts. While the recommended superannuation balance hovers around $690,000 for couples and $595,000 for singles as per the ASFA retirement standard, many Australians are aiming much higher, with some setting their goals at $1.6 million or more. - read more
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| Boost Your Retirement: Top Tips for Optimizing Your Superannuation Embarking on the journey towards a fulfilling retirement begins with understanding the cornerstone of your financial future—superannuation. An essential tool for Australians, superannuation is not just a safety net but a proactive strategy to ensure comfort and stability in your later years. Recognizing its centrality in retirement planning equips you with the insight to harness its full potential. - read more
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| Self-Managed Super Fund: Is It the Right Choice for Your Retirement? Self-Managed Super Funds (SMSFs) have emerged as a significant force in the Australian retirement landscape, giving individuals a way to take direct control of their superannuation investments. As a self-directed approach to retirement savings, SMSFs allow for a personalized investment strategy tailored to specific financial goals and circumstances. - read more
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| Building a Resilient Super Fund: Tips for Weathering Economic Challenges Ahead As the global economy continues to navigate through complex challenges in 2023, the need for thoughtful financial planning has never been greater. From unforeseen economic twists to persistent inflationary pressures, individuals are faced with an adaptive landscape that demands resilience and foresight, especially when it pertains to managing superannuation funds. - read more
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| Why Australia's Compulsory Superannuation System is Failing Superannuation in Australia has been a topic of hot debate for decades, with many experts questioning the current system's effectiveness. In a recent consultation paper released by the Albanese government, the objective for superannuation was stated as 'to preserve savings and deliver income for a dignified retirement, alongside government support, in an equitable and sustainable way'. - read more
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