What is superannuation?

Superannuation, or 'super', is money put aside by your employer over your working life for you to live on when you retire from work.

Super is important for you, because the more you save, the more money you will have for your retirement.

You can only withdraw your super money in certain circumstances – for example, when you retire or turn 65 years old.

How do I save super?

For most people, your employer pays money – ‘contributions’ – into a super account for you. This is called the ‘super guarantee’. They pay these contributions on top of your salary and wages. There are laws about how much super your employer must pay.

Generally, your employer must pay super for you if you are:

• 18 years old or over, and are paid $450 or more (before tax) in a calendar month

• under 18 years old, being paid $450 or more (before tax) in a calendar month and work more than 30 hours in a week.

This applies whether you work casual, part-time or full-time hours, and if you are a temporary resident. You may also be eligible if you are a contractor who is paid primarily for labour, even if you have an Australian business number (ABN).

How is money paid into my super?

Your employer is required to pay a minimum of 11% of your ordinary time earnings into super. This is set to gradually rise over the coming years.

Ordinary time earnings are what you generally earn for ordinary hours of work, including over-award payments, certain bonuses, allowances, and some paid leave. Payments for overtime hours are generally not included in ordinary time earnings.

You can also add your own money into your super savings, and sometimes the Australian Government puts money in too.

At Concise Advice we are here to help you maximise your Superannuation in the most tax effective manner to ensure you are building towards a comfortable lifestyle in your retirement.