Superannuation Contributions – Do you know your entitlements?

Essential Facts about

Superannuation

Contributions

that you need to know

1 YOUR EMPLOYER IS REQUIRED TO MAKE SUPER CONTRIBUTIONS

Your employer can pay super contributions on your behalf. Contributions should be paid at least quarterly and is based on an annual entitlement of 9.25% of your ordinary earnings. Prior to July 2013, the compulsory percentage was only 9% of ordinary earnings. Fortunately for all of us employees, the SG percentage will see a steady rise to 12% by July 2019.

2 REQUIREMENTS TO BE ELIGIBLE FOR SUPER CONTRIBUTION

To receive Super contributions, you must earn at least $450 a month. If your occupation involves private or domestic work - for example babysitting, house maintenance or ironing – then in addition to earning the minimum monthly wage requirement, you must also work at least 30 hours per week.

3 TYPE OF OCCUPATION

No matter what type of occupation you have, if you’re under 18 years of age, you must earn at least $450 a month and work more than 30 hours per week.

4 SUPER GUARANTEE ENTITLEMENTS

Good news for senior Australians – those aged 70 and over are now entitled to Super Guarantee entitlements from the 2013/14 financial year.

5 KNOW YOUR RIGHTS

You have the right to lodge a complaint with the Australian Taxation Office if your super entitlements are not paid to your fund at least every three months.

6 YOU MAY STILL BE ELIGIBLE FOR SUPER GUARANTEE

Even those individuals lucky enough to be self-employed, you may still be eligible for SG under specific circumstances. Find out more about contractors and SG via www.ato.gov.au or contact Lockwood & Ward for more information.

7 BOOSTS ON YOUR SUPER GUARANTEE

High income earners have been given a boost on their SG entitlements. Prior to 2013/14 financial year, the SG entitlement cap was set at an annual salary of $183,000 ($45,750 per quarter). But your employer is now required to make SG contributions on 9.25% of ordinary earnings up to an annual salary limit of $192,160 ($48,040 per quarter).

8 BE CAREFUL

Be wary when beginning a new job; ensure that you clarify with your employer whether your pay package includes super or is plus super.

9 TAKE CAUTION

Take caution when arranging salary sacrifice conditions. It is possible for your employer to cut your SG due to oddities within the salary sacrifice rules.

10 EMPLOYERS SUPER GUARANTEE CONTRIBUTIONS

Your employer’s SG contributions are counted towards your concessional (before tax) contributions cap.

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