Superannuation is money saved during your working life to provide an income in retirement. The Superannuation Guarantee (SG) is a compulsory employer contribution made into an employees super account.
Super is calculated on 9% of ordinary time earnings (OTE) and this includes all payments for work done in ordinary hours. The amount of future benefit in a super account depends on many factors including investment performance and the fees and taxes that are deducted.
Superannuation is invested over the long term to provide an income in retirement and can therefore only be paid out when you permanently retire from the workforce after a certain age.
With all investments, there is a relationship between the return received on an investment and the risk taken to achieve it. Super funds offer a wide variety of investment choices and a financial adviser can assist you in choosing the option that is right for you.
There are a number of different types of super funds, which fall into two broad categories; all profits to members funds such as industry funds, and for-profit funds such as retail funds run by banks.
The ACTU and unions support all profits to members funds such as industry funds, public sector funds and corporate funds. These funds continue to deliver higher investment returns to their members while maintaining lower costs.
This section outlines how the super system in Australia works. Click on the following topics for more information:
Who Gets Super
How Is Super Calculated ?
Types Of Super Funds
Features Of Industry Funds
Resolving Complaints With A Super Fund
Investing Your Super
Accessing Your Super