Basics about Super – Five basic things to know about our Super System

Basics about Super – Five basic things to know about our Super System

Basics about Super – Five basic things to know about our Super System

 

  1. Superannuation Guarantee (SG) – All Employers must pay at least the value of 9.5% of your wages/salary (not FROM your pay, but another expense of the employer) to your member account in a super fund (including a self-managed super fund). This is a compulsory legal requirement under superannuation guarantee (SG) laws, usually for any employee earning over $450 per month and over 18 years old. These are known as Concessional SG Contributions (the employer gets a tax concession/deduction as a business expense). (Formerly Deductible Contributions)
  2. Choice of fund – Except for employment agreements and some industrial awards, you can choose the super fund you want your employer to pay super into. If you don’t choose your super fund, your employer chooses for you.
  3. Salary Sacrifice – This is when you tell your employer to deduct some money BEFORE TAX from your pay and send that to your super fund with the SG they need to pay. This is also called a Concessional Contribution.
  4. Save Tax on Concessional Contributions – Your employer’s compulsory SG contributions and any before-tax contributions that you choose to make are both taxed at a maximum rate of 15 per cent on entry to the super fund. Compare a woman earning $37 000 a year – any $ earnt over this will pay over at least 30 per cent on that same income. Put direct into super, instead of taking it home, she will only pay 15% tax.
  5. Tax rate on investment earnings. Earnings on your super fund’s investments are also taxed at no more than 15 per cent.

 

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.

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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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