Super young or super old – it’s important to know how your Super works.
Whether your Super Fund has been up and running for years or you just started learning the ropes, we’ll let you in on a few rules you should know.
Know that there is a Superannuation Guarantee.
Employers are typically required to contribute to your Super Fund at a rate of 9.5% of your ordinary time earnings*. It’s even been rumored that this rate will increase to 12% in upcoming years.
*Ordinary time earnings are what what employees earn for their ordinary hours of work. These include over-award payments, commissions, shift loading, and certain bonuses and allowances. Overtime is not considered part of ordinary time earnings.
Know that there are two types of Super contributions.
Concessional Contributions are payments made to your Super prior to your income tax being taken out. These contributions are taxed at a flat rate of 15% once they enter your Super fund and include:
- Employer contributions
- Salary sacrificed contributions
- Other contributions in which you have claimed a tax deduction