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How super works

If you are working in Australia, chances are you have some money in super. But are you taking full advantage of your super entitlements?

The Superannuation Guarantee

In Australia we have a compulsory retirement savings system, which means your employer must pay a set percentage of your pre-tax salary into a super fund. The minimum amount payable is called the Superannuation Guarantee–currently 9.5%. This money is invested by the super fund and the earnings on these investments are added into your account.

The Superannuation Guarantee must be paid into a complying super fund which meets the Government’s current super investment and insurance regulations and most employees are eligible to choose which fund their super is paid into.

Adding to your super

In addition to your employer’s contributions, you can also boost your retirement savings by making additional contributions to your super fund - for example by salary sacrificing, making after-tax contributions or by taking advantage of the Government’s co-contribution scheme.

How much you are taxed on your super contributions and earnings depends on your age, income level and whether you are making additional pre-tax or after-tax super contributions.

 


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