Did you know that employers have to pay your superannuation contributions at least quarterly? Or that there are many ways to make sure you receive correct contributions? For these quick facts and more...
Did you know that employers have to pay superannuation contributions on behalf of workers at least every quarter?
Employers have to have paid superannuation contributions by the 28th day following the end of the quarter, however many employers are happy to pay more frequently.
The due dates for contributions are:
- 28 October (for the September quarter)
- 28 January (for the December quarter)
- 28 April (for the March quarter)
- 28 July (for the June Quarter)
Did you know that there are a number of ways to make sure your super contributions are being paid correctly?
As employers are no longer required to report superannuation contributions to employees, it is very important to make sure that you are receiving the correct amount of superannuation. If you are concerned that your employer has not correctly paid your super:
- Make sure you keep a record of how much you have been paid (if your hours vary).
- Check you superannuation fund statement, which shows a record of contributions. Many industry funds also have an online service to check on your account at any time.
- Talk to your employer about your concerns.
- Phone your superannuation fund directly.
- Contact the ATO on 13 10 20.
If your employer does not pay your superannuation contributions they may be liable for the Superannuation Guarantee Charge. This charge is enforced by the ATO.
Did you know that superannuation is taxed differently to income?
Superannuation is designed to supplement your income in retirement and therefore lower rates of tax apply to superannuation contributions. As a general rule the rates are:
- 15% tax on the contributions your employer makes to your super account.
- 15% tax on the investment earnings made by your super fund.
- Up to 15% tax (plus 1.5% Medicare levy) when your super is withdrawn at retirement.
- Personal, after-tax contributions are not taxed when you withdraw your super at retirement.
Did you know that it might be a good idea to consolidate your super?
You might find that as you move jobs you have more than one super fund. Superannuation funds often charge an administration fee to manage your super and consolidating your accounts into a single fund might save on fees and help you keep track of your savings. If you do choose to consolidate multiple accounts, it’s a good idea to check whether there are any exit fees and to make sure you will keep benefits such as insurance cover.