FINANCIAL SERVICES
SUPERANNUATION
FINANCIAL SERVICES
SUPERANNUATION
Superannuation Financial Services at RSM Australia
What is superannuation?
Superannuation is a tax-advantaged program to help you accumulate wealth in your working years so you have money to live off when you retire.
Your superannuation money is held in a super fund. Generally, you can only access the money once you satisfy a condition of release. Examples of conditions of release that are most regularly utilised are:
- Retiring permanently from gainful employment upon having reached preservation age and;
- Reaching age 65
During your working life, money is deposited into your super account by your employer. Under current legislation, employers are required to contribute 9.5% of an employee’s salary. These contributions have a flat tax rate of 15% - which in most cases is less than an individual’s personal marginal tax rate.
Making contributions to your superannuation
If you are self-employed, you have the option to make contributions to superannuation yourself which can be tax deductable. You may also wish to make extra contributions to your superannuation (within permissible caps), which can yield significant rewards for you by the time you reach retirement age.
Extra contributions can be made:
- with an additional employer contribution, called salary sacrifice (15% tax rate) and;
- after you receive your pay, called voluntary or non-concessional contributions (not taxed)
You do not usually pay any tax on your super when you access it in retirement. In some circumstances tax may be applicable if you are a member of a defined benefit fund. Your super fund will be able to tell you if you are in this type of fund.
What super fund options are available?
There are many superannuation funds to choose from in Australia.
When you start a new job, your employer can create an account for you with their chosen super fund. Or, you can give them the account details for a super fund of your choice.
You may also set up a self-managed super fund (SMSF) instead. This is a private super fund that operates as a trust, with you as the trustee and member. You can also have other members join, such as family, and contributions are paid into the SMSF’s bank account.
Once you have money in your fund, it needs to be invested to help you generate a return. Each type of investment carries its own potential risks and rewards and the investment portfolio you select will impact how much money you end up with when you reach retirement.
Self-Managed Super Fund (SMSF) services at RSM
Are you looking for our self-managed super fund (SMSF) service page?
SMSFs are an appealing option for business owners and individuals who want to control their superannuation assets.
