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Making the Most of Your Superannuation Guarantee

Useful facts about maximising your superannuation guarantee and securing your future.

At Approved Financial Planners, we are experts at helping you maximise your super funds to help ensure a comfortable retirement. Consequently, we always recommend seeing a professional financial planner such as those in our Perth office to look at your individual situation and make recommendations.

Making the Most of Your Superannuation Guarantee

However, we can give you some general advice and information to help you prepare for your first visit. Here are some useful facts about your superannuation guarantee and how they relate to the typical Australian. All of this information is available on the ATO website, though in a slightly more complicated form.

As of 1 July 2014, your employer must contribute 9.50% of your income to your superannuation fund. This number will increase by 0.5% each year until 2019, when it will have reached 12%.

To be eligible for superannuation guarantee, you must make at least $450 per month. If you are less than 18 years of age or work in a domestic capacity, you must work 30 hours per month, in addition to making $450, to be eligible. As of July, 2013, those who are 70 years of age and over are now eligible for the superannuation guarantee.

The superannuation guarantee does have an upper cap. For the 2013-2014 year, it was $192,160. Your employer was not responsible for contributions for any income above that threshold.

Maximising Your Guarantee

If you change jobs, it is important to know whether your quoted pay includes your super guarantee or not. For example, if an employer offers $100,000 including your guarantee, your actual pay is $91,324 before their contribution. If the offer is $100,000 plus your super guarantee, your actual pay is $100,000 and you receive a contribution of $9,500.

The most efficient way to maximise your superannuation guarantee is to consult a professional financial planner who specialises in superannuation. Call Approved Financial Planners today: 08 6462 0888.