Superannuation

Superannuation, also known as Super is the term we use in Australia for the contributions that are made towards the benefits we receive when we retire.
Superannuation is compulsory in Australia where employers are responsible to make Superannuation contributions to their employees nominated super fund. For those who are eligible for Super, your employer is required to pay a minimum contribution of 9% of your earnings quarterly.

To be eligible for Super you must be 18 years old, but not over 70 years of age and you need to have received at least $450 before tax in any calendar month.

Employees have the option to elect which super fund their employer pays their super guarantee payments into, however employers will generally have a default fund they use for employees that don’t already have a preferred one.

Superannuation funds are managed by trustees and are governed by Australian law to follow strict guidelines and operate in compliance with these rules. The purpose of this is to ensure your super is property managed and funds whom operate in such a manner are referred to as complying super funds.

Employers are required to make your contributions into either a complying super fund or a retirement saving account.

To access your superannuation for most working Australians, you must reach the age of 55 before being able to do so. This is known as Preserved benefits, which are benefits that cannot be touched until the person has reached preservation age.

The only exception to this rule is when a person is in severe financial hardship or compassionate grounds where medical treatment not covered by Medicare is needed.