A Quick Guide to Superannuation

By Jason Fittler

Below will give you a quick reference to how the current superannuation laws relate to you. This is not a comprehensive look at the current legislation but merely a quick reference point to get you started. Before doing anything in regards your superannuation please speak with a qualified advisor.

As I move through the age groups I will only include the differences in benefits from the previous age group.

Under 50 years of age.
• Employer contributes 9% of salary into your super fund.
• Most employees now have the right to choose which fund they invest their super money into.
• You can receive a maximum of employer contributions of $50,000 from all sources of employment.
• You can make your own contribution of up to $150,000 per annum.
• You can not access your superannuation until age 55 years.
• You can have your Life and TPD insurance inside your super fund; as such the premiums are paid out of the super fund money.

Between age 50 and 55 years. (Same as above except)
• You can receive a maximum of employer contributions of $100,000 from all sources of employment. This is until 2012.

Between age 55 and 60 years. (Same as above except)
• You can start a transition to retirement pension (TTR pension), which means that you can access your superannuation.
• One strategy is to salary sacrifice your salary into super and draw down a TTR Pension. This will reduce your overall tax bill for the year.
• Once in a TTR Pension the funds your receive from the super fund are taxed at your marginal tax rates but you receive a rebate of 15% for tax paid by the super fund.

Between age 60 and 65 years. (Same as above except)
• Once in a TTR Pension the funds you receive from the super fund are tax free.
• All income earned by the super fund is tax free all capital gains in the fund are tax free.

Over age 65. (Same as above except)
• You must start to draw down on your super fund unless you pass the work test. The work test is that you have to show that you worked a minimum of 40 hours during a one month period.

Now get going on building your super investment and enjoy your retirement.
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