What is Superannuation?
Superannuation (also known as ‘Super’) is the most tax-effective and best way to accumulate long-term savings in Australia today.
How much is paid?
For those aged 18 years or older and earn more than $450 per month, it is legislated that your employer must pay an amount of money into the super plan of your choice. Currently your employer must pay 9.5% of your gross salary into your super plan. This is a compulsory, legal obligation so make sure you check you payslips to ensure your employer is making these contributions.
Tax on superannuation earnings (including employer contributions) is at a maximum of only 15% (or 15 cents in the dollar) and with the right portfolio strategy, that rate can be lower than 5%. This is significantly less than receiving income as salary where the marginal tax rate can be as high as 47% (or 47 cents in the dollar).
You can apply for life and disability insurance (for both short and long-term disablement) and the premiums are deducted from your super plan.
It is portable?
Yes. You choose your plan with the assistance of AAA Plus Super Pty Ltd which will provide the most product competitive and cost effective plan for you. You then instruct your employer to pay contributions as per the “Choosing your super fund” form which you complete on application.