Superannuation in Australia
Preparing for a better future
Australia has a system of compulsory superannuation, sometimes described as a pension scheme. Employers are required by law to pay a proportion of an employee’s salaries and wages (currently 9%) into a superannuation fund to help people save for retirement. These funds can be accessed when an employee retires or “transitions to retirement”.
You are eligible for superannuation if you are aged 18-70 years and are paid at least $450 (before tax) in a calendar month. If you are under 18, you are still eligible if you work more than 30 hours a week.
If you are eligible for super, generally your employer must pay a minimum of 9% of your earnings from your ordinary hours of work (overtime worked outside the ordinary hours is not included) into your super account each quarter.
You can only access your super when you reach your preservation age and retire, or when you turn 65 even if you have not retired from the workforce. Recent changes announced in the 2009 Federal Budget may see the retirement age move to 67 from approximately 2017.
The table below shows the preservation age at which you can access your super:
|
Date of birth
|
Preservation Age
|
|
Before 1 July 1960
|
55
|
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1 July 1960 – 30 June 1961
|
56
|
|
1 July 1961 – 30 June 1962
|
57
|
|
1 July 1962 – 30 June 1963
|
58
|
|
1 July 1963 – 30 June 1964
|
59
|
|
From 1 July 1964
|
60
|
If you are not an Australian or New Zealand citizen and you enter Australia on a temporary resident visa,
you can receive payment of any superannuation you have
accumulated when you leave the country permanently. This payment is subject to a withholding tax – in most cases 35% and you must show evidence of your visa eligibility.
Superannuation funds operate as trusts with trustees being responsible for the prudential operation of their funds and in formulating and implementing investment strategies for its members.
There are a number of superannuation funds in operation in Australia. Australian employees are able to choose their superannuation fund so it is important to choose a fund based on its performance, fees and the service you receive.
Hostplus an industry superfund fund for the hospitality, tourism, recreation and sport industries has 900,000 members, Industry super funds offer low fees, do not pay commissions to financial advisors and are run to benefit members.
As an Industry fund member you will have the advantage of being with a fund that delivers competitive investment returns, has a low member fee on its core and personal products that have been guaranteed until 31 December 2010, and you are entitled to benefits through partner relationships that deliver access to low cost banking products, travel discounts and special insurance rates.
Hostplus with funds under management worth more than $6.9 billion, has been awarded SuperRatings Fund of the Year 2007, 2008, 2009 and Money magazine’s Best of the Best award for Best Super Fund Manager 2007, 2008 and 2009.
Information Supplied by
HOSTPLUS
Telephone: 1300 467 875
(8am to 8pm Monday to Friday)
Website: www.hostplus.com.au
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