In Australia Superannuation is supported by government and employers are required to pay minimum proportion on top of employees salaries and its compulsory to maintain. Super is basically a certain part of amount set aside over lifetime for retirement.
Mostly super begins when someone starts work and employer starts paying a portion of salary into super fund which are known as super fund. Super fund can invest money in such as property, shares and also they can offer different types of insurance such as income protection.
As per 1 July 2014 employers are paying 9.5% as a proportion on top of employee’s wages and they are also further encouraged to add on their superannuation. There are further changes implemented from 1 January 2014, employers are required to pay default contribution to an authorize “My Super Product”. Minimum obligation is gradually increases from 9 % to 12 % from 2013.
An individual can withdraw funds from his superannuation fund when he meets one of the conditions mentioned in release contained in Schedule 1 of superannuation industry regulation 1994.
Super and Tax Australia
Tax pay on super contribution depends on variety of factors. They are as following:
- Tax on super contribution depends generally depends on type of contribution.
- Tax on super depends on the source of benefit, how benefit paid and age.
- Tax treatment is also affected by how benefit received either as lump sum or regular payments.
For more information on superannuation and tax on super, ato superannuation tax concession and tax return, please contact us now or you can email us at email@example.com
to get quick Tax refund.