Overview of superannuation

(Reference: www.ato.gov.au/superfunds)

The superannuation system is designed to help you provide for your retirement without having to rely too heavily on the age pension. It is a system that is both tax-effective and cost efficient. Superannuation is a system of compulsory saving for retirement. For most employees your employer is legally required to contribute a set percentage of your salary into a complying superannuation fund, which can now be a fund of your own choice. This payment is on top of salary and wages. You can choose to make your own voluntary contributions as well, depending on your particular financial circumstances and the amount of money you want to save. Choice of superannuation fund is a law that gives many employees the right to choose which superannuation fund will receive their employer superannuation guarantee contributions. Choice of superannuation fund started on 1 July 2005. (Source: ATO website)

The changes to super from 1 July 2007 help to make super easier to understand, improve incentives to work and save for your future and give you more flexibility in how you can draw on your super savings when you retire. Be aware that the information presented here is a guide only.

You may be starting work or you may have been working for some time. You may work for someone else or you may be self-employed. Your retirement may be just around the corner or thirty years away. Whatever your circumstances, the new changes make super an even better investment for your future.

To ensure you get maximum benefit from the Better Super changes, you need to check that your employer has provided your tax file number to your super fund. It helps you keep track of your money and makes sure you pay the lowest rate of tax on contributions.

Personal circumstances and super fund returns will vary, so we recommend that you seek appropriate professional advice before making decisions about your super. (Source: ATO website)

For further information see:

• Gold Financial website:www.goldfinancial.com.au/pdfs/Doc5_Superannuation.pdf
• ATO website: www.ato.gov.au/superfunds