Basics about Super – Basics 6-10 about the Australian Super System


Basics about Super - Basics 6-10 about the Australian Super System
Basics 6-10 about the Australian Super System


Continuing our 2 part series, here is five more basics about the Australian Super system. (For the first 5 Basics 1-5 see HERE)

  1. Investment Choices – While the big major super funds allow you to choose how you want your money invested by the super fund (by choosing from your super fund’s investment options) you have much more choice in self-managed super (SMSF). Of course if you don’t make an investment choice, then your super money is invested in the default investment option. The default option is usually invested in a range of assets, often called the 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 of the investments may lose money.
  2. Member Statements – Your super fund must send you regular reports (at least annually) on the fund’s performance, and on your own personal super account performance. Your super fund must also disclose fees charged, and show you any other transactions on your super account (such as the deductions for insurance premiums and taxes).
  3. Preservation until you Retire – Your money is preserved in super, which means you generally can’t take your money (benefits) out of the super fund until you elect to 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. For permission to withdraw your super you must, in the correct technical language, satisfy a “condition of release” which are very specific, such as resigned from your employment
  4. Co-contribution extra from the Government! – If you make a deposit of your own personal money (that is non-concessional (after-tax)) contributions to your super fund, depending on your income tax level/margin, 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. See More at the ATO site.
  5. Contributions Caps – Max Contributions – There are maximum levels that can be contributed, that you can make each year to non-concessional caps (2014-2015 $180,000) and concessional caps ($, or you pay penalty/extra tax.

The general concessional (before tax) contributions cap for 2013-14 is $25,000.

However, from the 1 July 2013 if you are 59 years old or over on 30 June 2013, additional concessional contributions will be able to be made to your super, with the cap increasing from $25,000 to $35,000.

From 1 July 2014:

– The higher cap of $35,000 will also apply to people who are 50 years or over

– The general concessional contributions cap will rise to $30,000.

Got questions? If you want experts who have years of helping others, without the hype – then call for a FREE strategy session today and also get your FREE Expert Guide – Self-Managed Super and Youtop right hand side above.

If you have any questions, why not give us a call – it’s FREE also! No obligation. 0407 361 596, Paul.

And book for our next  FREE Seminar – Self Managed Super Fund Roadmap – All you need to know plus bonuses see HERE


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.
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