Australian employers are obliged to pay superannuation contributions for their eligible employees.
Australian employers are obliged to pay superannuation contributions for their eligible employees. The payments are made towards either a superannuation fund or a retirement savings account. If employers fail to do so, they will have to pay a fine ("superannuation guarantee charge"). This system is referred to as the superannuation guarantee.
The superannuation rules will be further reformed with effect from July 1, 2005. As of said date, the majority of persons employed in Australia will have the right to individually choose their superannuation fund ("choice of super"). Exceptions include employees in a certified or Australian Workplace agreement.
Employers are required to offer their employees such choice (via standardized form), however the latter do not have to exercise it. In this case, a default fund will be selected by the employer (usually the existing fund). Even though all employees can choose a fund or request a change at any time, the employer only has to accept one change in any 12-month period.
Employers (without having a licence to offer financial advice) may not recommend any fund to their employees actively.
Additional contributions or such other than for the mandatory super payments are not by law required to offer choice, however it is expected that some choice will be applied on a voluntary basis.
Find more information on the internet under www.superchoice.gov.au.
From the same date onwards, the Australian Government has abolished the superannuation surcharge, which means that no surcharge levy will be imposed on surchargeable contributions and certain termination payments made on or after July 1, 2005. The goal is to increase superannuation savings especially for high income persons.
For more information, please visit www.hannoverlifere.com or www.ato.gov.au
The superannuation rules will be further reformed with effect from July 1, 2005. As of said date, the majority of persons employed in Australia will have the right to individually choose their superannuation fund ("choice of super"). Exceptions include employees in a certified or Australian Workplace agreement.
Employers are required to offer their employees such choice (via standardized form), however the latter do not have to exercise it. In this case, a default fund will be selected by the employer (usually the existing fund). Even though all employees can choose a fund or request a change at any time, the employer only has to accept one change in any 12-month period.
Employers (without having a licence to offer financial advice) may not recommend any fund to their employees actively.
Additional contributions or such other than for the mandatory super payments are not by law required to offer choice, however it is expected that some choice will be applied on a voluntary basis.
Find more information on the internet under www.superchoice.gov.au.
From the same date onwards, the Australian Government has abolished the superannuation surcharge, which means that no surcharge levy will be imposed on surchargeable contributions and certain termination payments made on or after July 1, 2005. The goal is to increase superannuation savings especially for high income persons.
For more information, please visit www.hannoverlifere.com or www.ato.gov.au