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Understanding Superannuation

One of the many financial services we offer at Approved Financial Planners is help with your superannuation fund. Whether you choose self managed superannuation or any of the super funds available to you, we can provide sound financial advice.

How Superannuation Works

Understanding Superannuation in Australia

Money is placed into your superannuation account, also known as a “super account” or “super,” by you, your employer or both. The money in your super fund is then invested with the intent of it growing in time, even though it will occasionally return a negative result for the year. *

As a super grows, the money that was earned is reinvested and also earns a return; this helps your balance grow even more. On member contributions for which you claimed a tax deduction or on contributions from your employer, your tax is only 15% of any contribution up to $30,000 per year. The $30,000 limit is known as “concessional contributions cap.” *

If you are 50 years of age or older, your “cap number” is $35,000 per year. If a combination of certain contributions and your income is greater than $300,000 per year, you will be taxed at a rate of 30% on all contributions that are over the cap. *

This money is held for you until you die, retire or reach a certain age. Depending on your date of birth, this age is between 55 and 60 years old. Your benefit is then paid in either a lump sum or an income stream. *

Choosing Your Super Fund

Most Australians have the option of choosing their own superannuation fund. If you shift jobs, you can often take your super fund to your new place of employment. AMP Capital recommends checking with your new employer’s human resources or payroll department.

We Can Help You

If you would like to learn more about your super fund, call Approved Financial Planners on 08 6462 0888 today. We have a wealth of experience in helping people like you maximise their supers and their retirements.

*AMP Capital. Understanding Super. Make your super work harder for you.