Superannuation

Superannuation is an arrangement designed to collect funds that are available for withdrawal ideally at the time of retirement. This is a government supported process. Under this process an employee deposits a fixed proportion of salary into a superannuation fund. Though people are obligated to deposit a minimum of 9.5% as of July 1, 2014, we encourage our clients to set aside a larger chunk for this fund. This rate is set to increase annually in the coming years. Our clients may choose to voluntarily contribute more funds to superannuation fund and in return receive tax benefits.

Basically there are seven types of superannuation funds:

Industry Funds
This category of funds is operated by an employer’s association. This fund is set up by an organization to benefit its employees.

Wholesale Master Trusts
This category of funds is run by financial institutions for its employees. They are also referred to as retail funds by APRA.

Retail Master Trusts/Wrap platforms
This category of funds is operated by financial institutions for profits.

Employer Stand-alone Funds
This category of funds is run by employers for their employees where every fund may have different structures.

Self-Managed Superannuation Funds (SMSFs)
This category of funds is the largest sector in Australia. This fund limits its members to four where the trustees of the fund are the fund members. This process is regulated by Australian Taxation Office.