SUPERANNUATION TIPS:

What is super?

Super is a way of helping you save for your retirement. By saving small amounts of money from now, you can make sure you have enough to live on when you’re older.

1. Why do I need super?

Super is a good way to save for a number of reasons:

• you can save a little bit at a time over a long period
• it’s a long-term investment. Super funds combine everyone’s small amounts into a large pool, so they often get better investment rates
• super is taxed at a lower rate than most other investments or salary.

Generally, if you have a job and are over 18 and get paid $450 or more in a month, your employer must pay money to a super account for you under the super guarantee.

This money must come directly from your employer, not from your pay packet (or gross salary). However, you can put extra money into your super account yourself if you want to.

The money in your super account is invested by the fund on your behalf, and is yours to use when you retire.

The super guarantee covers full-time, part-time and casual employees.

If you are aged 18 or older and get paid $450 or more in a month, your employer must pay super into a super account for you.

There are some employees who are not eligible for super contributions from their employer.

Employees are not eligible for super if they:

• are paid less than $450 (before tax) in a month
• are under 18 years old and work 30 hours or less a week
• are paid to do work of a domestic or private nature for not more than 30 hours a week. For example, a part-time nanny or housekeeper
• are members of the Army, Navy or Air Force Reserve.

Some contractors are considered employees for super guarantee purposes. If you work as a contractor under a contract that is mainly for labour, your employer must make super contributions on your behalf. This includes contractors who quote an Australian business number (ABN).

A contract is mainly for labour if more than half of the value of the contract is for the person’s labour, which may include:

• physical labour
• mental effort
• artistic effort.

Example

Jane’s total ordinary time earnings for the quarter (13 weeks) is	($700 x 13) = $9,100
Her employer’s super contribution for the quarter is	(9% x $9,100) = $819

No, you can't have it yet. The whole point of super is to keep adding bits over time so that it grows into a nice fat sum for use when you retire. You can't withdraw your super until you reach your earliest retirement age – which is 60 for anyone born after 30 June 1965.

There are exceptional circumstances in which it may be legal to access your super before you reach retirement age. These circumstances are tightly restricted and mainly relate to specific medical conditions or unusually severe financial hardship.

Choosing a super fund

You may have more than one super account, but you may find it easier to manage your super money if you have just one account.

If you already have more than one super account, consider combining them into one super fund so you pay only one set of fees and costs. Ask your super fund if there are fees or charges for rolling your money over to another fund before you decide.

You can transfer or rollover your super, with some exceptions. If you do so, your old super fund has 30 days to make the transfer. The 30 day period starts once you have provided all necessary information to your fund.

Growing your super

Salary or wages can be 'sacrificed' into super. That is, you can arrange for your employer to put a part of your before-tax salary into your super account for you.

Your payroll or human resources officer can tell you how to set up a salary sacrifice arrangement.

There is no legal requirement for employers or employees to enter a salary sacrifice arrangement.

Keeping track of your super

Here are some ways to keep track of your super:

• your super fund will send you a member statement at least once a year
• make sure your employer and super fund have your current contact details
• try not to have more than one super fund so keeping track is easier
• check your balance, employer’s contributions, fees deducted, cost of any additional covers and closing balance
• tell your fund your tax file number (TFN) or you may pay extra tax
• if you have questions, contact your super fund, or for general super information, contact us
• use tax time (when you complete your annual tax return) as a reminder to check that your super is in order.

SuperSeeker can help you track down your lost super. To use SuperSeeker, you must provide your:

• name
• date of birth
• tax file number.

You can access SuperSeeker:

• online using the SuperSeeker tool
• over the phone by calling 13 28 65 and following the prompts
• by downloading and completing a Searching for lost super form (NAT 2476).

SuperSeeker is free and available 24 hours a day, seven days a week.

If you find your lost super, you may want to combine all your super into one account and potentially save on administration fees.

You can transfer super from one fund to another using the Request to transfer whole balance of superannuation benefits between funds.

Talk to your super fund for more information.

Your present employer will stop contributing to your existing super fund when you leave your job. You may nominate your existing super fund for your new job or you could choose for the super fund nominated by your new employer.

Why should I give my TFN to my super fund?

If your super fund does not have your tax file number (TFN):

• your fund may have to pay extra income tax on contributions your employer makes for you (including salary sacrifice) and may take this extra money out of your super account
• your fund may not accept some contributions, such as your personal contributions
• you may miss out on the super co-contribution.

If you’re concerned about unpaid super guarantee contributions, follow these steps.

Step 1

Talk to your employer. Ask them:

• How often are they currently paying your super?
• Which fund are they paying it into?
• How much they are paying?

It’s a good idea to ask these sorts of questions when you start work with an employer.

Step 2

Check your last member statement from your super fund, or contact them, to confirm that your employer has paid your super.

Step 3

If you have completed steps 1 and 2 and still believe your employer is not paying enough or any super, or is not paying the super into your chosen fund, you can lodge an enquiry about unpaid super.

Relying on our information - our commitment to you

We are committed to providing you with advice and guidance you can rely on, so we make every effort to ensure that what we give you is correct.

Some of the advice and guidance on this website applies to a specific financial year. This is clearly marked. Make sure you have the information for the right year before making decisions based on that information.

If you feel that our advice and guidance does not fully cover your circumstances, or you are unsure how it applies to you, please contact us.