Get your superannuation contributions
Once you are an employee, Staff Australia makes superannuation contributions as required by the Superannuation Guarantee Legislation.
What is Superannuation?
Superannuation, often referred to as “super,” is a compulsory retirement system in Australia. To put it simply, the Superannuation Guarantee Legislation was implemented to ensure that individuals have the funds available to support themselves when they retire from the workforce.
Businesses are required to contribute a minimum percentage of an employee’s earnings to a superannuation fund. This is an investment which accumulates over the employee’s working life. The current Superannuation Guarantee sits at 11% and is set to gradually increase to 12% by 2025.
From June 2022, Australia’s superannuation assets amounted to more than 3.4 trillion Australian dollars, making it one of the largest pension systems globally. (ASFA, 2024)
Why is Superannuation important?
- It provides financial security and freedom to those who have retired by reducing dependence on the age pension.
- Making contributions to a superannuation fund gives you the ability to accumulate interest. Compound interest allows for your retirement savings to grow over time.
- Super funds often offer insurance benefits, including life and disability cover. This will help support you and your loved ones in the long run.
Superannuation contributions are also crucial for Australia’s economic stability as it helps reduce future financial strain on public resources. Understanding and effectively managing super can lead to a more comfortable and secure retirement.
How to obtain superannuation contributions:
You can complete a Standard Choice Form which specifies the default fund as Prime Super (into which Staff Australia will make superannuation contributions) unless you elect another choice in accordance with legislative requirements.
Staff Australia will pay into your nominated super fund, if you do not nominate a fund, we will check with the ATO to see if you have a previous fund. If you don’t have either, we will make contributions through Prime Super. Staff Australia will pay super on your ordinary time earnings. Super is generally not calculated or payable on overtime earnings.
Superannuation contributions are remitted to the fund on a quarterly basis as required by legislation. If you take up the Staff Australia plan through Prime Super, they will send you a welcome letter following the initial contribution. This provides personalised details about your account including investment options and insurance cover.
Try the Prime Super calculator to see how much income you may need when you retire.
Resources:
The Association of Superannuation Funds of Australia (2024) Super statistics, ASFA The Voice of Superannuation since 1962, viewed 5 June 2024, https://www.superannuation.asn.au/resources/super-stats/
WTW (2024) Global pension assets study – 2024, Thinking Ahead Institute, viewed 5 June 2024, https://www.thinkingaheadinstitute.org/research-papers/global-pension-assets-study-2024/
FWO (2024) Tax and superannuation, Fair Work Ombudsman, accessed: 06 June 2024, https://www.fairwork.gov.au/pay-and-wages/tax-and-superannuation/
