Growing your super now is a great way to help you achieve the retirement you want later on. There are a few different ways that your super can grow:
Employer paid super
If you’re eligible for super guarantee (SG) contributions, at least every three months your employer must pay into your super account a minimum of 9.5% of your ordinary time earnings, up to the ‘maximum contribution base’. Read more about employer contributions here.
These payments are classified as employer contributions and count towards your concessional (before-tax) contributions cap.
Ordinary time earnings are what you earn for ordinary hours of work, including over-award payments, commissions, allowances, bonuses and paid leave. If you’re a contractor, the minimum super amount should be calculated on the labour component of your contract, if it’s possible to separate it out. Otherwise it should be calculated on the total amount.
If you take up an Australian employer’s offer to temporarily work overseas, your employer must continue to pay super contributions for you in Australia. You can read more about what happens with your super when you are working overseas here.
Personal super contributions
You can add to your super by entering into a salary sacrifice arrangement with your employer, making personal super contributions, transferring super from foreign super funds or you may be eligible for government contributions. However, there are limits on how much you can contribute to your super each year. Find out more about personal super contributions here.
Super from the Government
In some circumstances, the Government can make additional contributions to your super. The super co-contribution helps eligible people boost their retirement savings. Find out more about co-contribution here.
With an emphasis on long-lasting relationships, Pender Accounting Group brings a deep accounting knowledge to deliver specialist taxation services, including superannuation services. Get in touch today to speak with us about your super.