Basics 6-10 about Super in Australia

Five more basics about super in Australia. (For Basics 1-5 see HERE)

Basics about Super

Basics about Super

6. Investment choice – Most funds allow you to decide how you want your money invested by the super fund, by choosing from your super fund’s investment options. If you don’t make an investment choice, then your super money is invested in a default investment option. The default option is usually invested in range of assets, known as a balanced investment option, although some super funds call it a growth option. Investments are spread across high and low risk assets to manage the risk that some investments may lose money.

7. Member reporting – Your super fund must send you regular reports (at least annually) on the fund’s performance, and on your own super account’s performance. Your super fund must also state fees charged, and show you any other transactions on your super account (such as the deductions for insurance premiums and taxes).

8. Preservation. Your money is preserved in super, which means you generally can’t take your money (benefits) out of the super fund until you retire at or after your preservation age (from age 55 to 60, depending on your date of birth), or when you satisfy another condition of release. To be allowed to withdraw your super you must, in super’s technical language, satisfy a condition of release which are very specific.

9. Co-contribution. If you make your own deposits that is non-concessional (after-tax) contributions to your super fund, depending income, the government may put some tax-free money into your super fund for you. This is known as the co-contribution and phases out on a sliding scale.

10. Contributions caps. The amount of super contributions that you can make each year is capped, or you pay penalty/extra tax.


About SuperBenefitnews

Self-Managed Superannuation Service Providers in Australia. SuperBenefit will SET UP your SMSF and provide investment education for a better result. We take care of all your administration, accounting, ATO lodgement and audit of SMSFs, working with you and your advisors. If you want advice we can arrange one of our recommended advisors and accountants to meet with you, as we do not give advice, but take instruction only. Take control of your super, including property shares and other assets. Learn how to be your own advisor - make better decisions - by being mentored and coached to invest your own super wisely and strategically by qualified partners. Book to come to an event to find out more, or - Call us 0407 361 596, no obligation FREE strategy call.
This entry was posted in Basics about Super, Super Law & Compliance and tagged , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s