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HOW MUCH DO YOU KNOW ABOUT SUPERANNUATION?
If you’re an Australian resident over 18 and earning more than $450 in a calendar month, you are probably contributing to superannuation.
In a nutshell, super is a strictly regulated, tax effective way of putting money aside for your retirement. The government sets a minimum compulsory contribution amount, which your employer calculates based on your income and pays into your nominated super fund. You are encouraged to contribute money to your super in addition to your employer’s payments.
Government policy, our changing lifestyles and extended life expectancies see the structure of superannuation and its supervisory guidelines being routinely revised. The result is a very confusing super system.
You probably have a basic understanding of how super works: you put money in and leave it there until you retire, right? But you also know it is more complex than that.
It’s your money after all, so take our quiz and find out exactly how much you know about building your retirement fund.
Q1: What is the current Superannuation Guarantee employers must pay?
Q2: Can you make personal contributions to super?
- Yes, but under certain circumstances
- Yes, but only at tax time
- No, only compulsory employer contributions can be made
Q3: What are concessional contributions to super?
- Contributions made by people holding Centrelink Concession cards
- Contributions that attract government concessions such as reduced fees
- Contributions that are taxable
Q4: What is the annual limit for concessional contributions to super and what happens if you exceed it?
- $250,000 for those retiring in the next financial year. Amounts exceeding the cap are forfeit.
- $25,000 regardless of age. Penalties may apply to amounts exceeding the cap.
- There is no cap. The purpose of super is to save.
Q5: How does the government’s co-contribution scheme work?
- The government may contribute a one-off sum up to $500 to your super fund
- You can contribute to your partner’s super if they contribute to yours
- You can contribute to a cooperative (pooled) super fund to assist low income earners
Q6: Do you have control over how your super is managed?
Q7: At what age can you normally access your super?
- Upon retirement regardless of age
- Upon retirement at age 65
- Upon retirement and depending on age
Q8: Is your super included in your estate when you die?