RSM Australia

Superannuation

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.

Key Superannuation Contact



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Want to learn more? Watch our superannuation animation above.

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.

view the rsm smsf page here >>

How can RSM help with your superannuation?

Your super can be a major vehicle for wealth accumulation in your life.

But it’s important to understand where your super money is going so you can take specific measures to maximise your return. It’s also important to structure your investments according to the level of risk you are comfortable accepting. Super funds usually have various risk options you can choose from.

It’s important to realise different super funds charge different fees for the investment options, product features and benefits applicable to each fund. Remember this is your wealth, and therefore fundumental that the provider you are with has features and benefits that are tailored to your circumstances and objectives to ensure you are maximising value.

Other super strategies, such as consolidating various super accounts into a single account, can also present risks you may be unaware of such as losing valuable insurance cover. 

Our expert financial advisers can help you:

  • Choose a superfund that aligns with your personal goals.
  • Review your investment strategy.
  • Consolidate your super after evaluating potential risks.
  • Use extra contributions to maximise your wealth accumulation efforts.
  • Plan for retirement.
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No matter your age or life stage, your superannuation matters.

And with expert guidance at RSM, you’ll be surprised how the smallest changes can make the biggest difference to your life in retirement.

For an obligation free initial consultation about your superannuation portfolio, get in touch with a financial expert at your local RSM office today.

Read what our clients have to say about the RSM superannuation team...

Retirement - How much do I need?

17 September 2020
Retirement: a delightful word that conjures up images of days spent in slippers, volunteering to help others, rediscovering old hobbies, taking long cruises in the Mediterranean, or just enjoying your new found freedom.

Pre-retirement planning checklist and superannuation

10 September 2020
Many people only start planning for retirement when they enter their 50s and other family commitments have begun to decrease.

SMSFs and property acquisitions

17 August 2020
Recently released ATO data has revealed a surge in new SMSF registrations, with new establishments increasing by 35% in the March 2020 quarter.

The Power of Farmland in Superannuation

14 August 2020
Acquiring, farmland inside a Self Managed Superannuation Fund (SMSF) that can then be leased to a related party is popular strategies for farmers to help build their wealth for retirement. Make this a stress free transaction by considering the following issues:

Case Study: Untangling the financial web

28 July 2020
Understanding financial statements and their underlying supporting documents can feel like interpreting a foreign language, but they contain a wealth of important information for property settlements.

thinkBIG | Superannuation strategies through the ages

3 June 2020
Over the course of your working life, you will build up your superannuation fund through regular contributions from your employer. As you progress through life, you will have the opportunity to engage with your superannuation and look at investment options. 

Top 5 issues with SMSFs and Family Law

25 May 2020
Superannuation and SMSFs are becoming increasingly complex, especially in a family law situation.

A focused investment approach

22 May 2020
History has proven that a focused long-term conviction to an investment philosophy, robust processes, and quality investments will undoubtedly ensure enhanced security and long-term returns.  

Early release of Superannuation - short term gain for long term pain?

30 April 2020
The Stanford Marshmallow experiment - a widely published psychological experiment, place a child in a room with a single marshmallow, promising them that they will get another marshmallow if they do not eat the first one for an unknown amount of time (usually between 10 and 15 minutes).

Accessing Superannuation: The practicalities

9 April 2020
One of the early announcements from the Government in response to COVID-19 was to allow certain individuals limited access to their superannuation. This was a welcome announcement for many in the early days, but the details of how this could be accessed and when it would be available remained unclear.

Self-managed superannuation funds (SMSFs) and related party rent relief

31 March 2020
Economic relief continues to roll out for those impacted by COVID-19, with the ATO confirming over the weekend that they will not take compliance action for SMSFs that offer rent reductions to related party lessees.

Family Law Property Settlements – potential impact of COVID-19

30 March 2020
Valuations for Family Law property settlements. Valuations are prepared as at a specific date based on circumstances and financial information known at that point, so it’s possible that valuations prepared a month ago or more may no longer be relevant - particularly for sectors which have been impacted more severely than others b

Self-Managed Superannuation Funds and loan relief

26 March 2020
With the financial impacts of the COVID-19 pandemic increasing, many are looking for loan relief in an attempt to manage cashflow.

Superannuation-related stimulus measures

23 March 2020
The second government stimulus package has included some measures specifically aimed at superannuation.

Pay Your Super First

10 January 2020
SuperStream and more recently Single Touch Payroll (STP) have both been significant changes to the payroll compliance framework for employers.

The power of a small investment into superannuation

18 December 2019
You’ve recently graduated as a medical professional after years of hard work and endless hours hitting the books.  As tempting as it is to use your well-earned income on a feature-packed credit card and a new BMW, have you considered the power of a small investment into your superannuation? 

Downsizing to improve your income in retirement

4 November 2019
Have you worked hard your whole life, but feel like you have not accumulated enough to fund your retirement? Well, downsizing could be the solution for you.

Downsizer Contributions - your choice of super fund matters

29 October 2019
You’re thinking about moving home and expect to have some remaining funds after the move. You know about the downsizer contribution rule, you’ve read a few articles and you’re ready to go. Before you go any further, here's a few questions you might not have thought about.

Downsizer Contributions impact on the Age Pension

11 October 2019
By making downsizer contributions, it’s important to be aware of the impact this may have on your Centrelink entitlements such as the age pension or for self-funded retirees, the benefits under the Commonwealth Seniors Health Card (CSHC).

Understanding the new and improved downsizer contributions rules

8 October 2019
A variety of factors come into play when determining if you should downsize the family home.

Superannuation Legislation for High Income Earners

4 October 2019
The Government has passed superannuation legislation for high income earners (with income exceeding $263,157 per annum) which allows employees with more than one job to choose not to have the 9.5% superannuation guarantee paid by all their employers.

Superannuation & the federal election – change is on the horizon

3 May 2019
With a federal election just weeks away and party campaigning in full swing, what changes to superannuation may be on the horizon? Coalition Win: Unscathed Superannuation

Not super to keep on meddling

23 April 2019
No wonder people aren’t engaged with their superannuation and don’t pay attention. For young people like myself there are most likely going to be another 100 rule changes before we can access our superannuation and here comes another set of proposed changes.

Insurance matters, so hang on to those superannuation accounts

21 March 2019
About 28 million superannuation accounts for 25 million Australians look to be way too many, and seemingly justifies a Federal Government campaign to forcibly consolidate funds.

Super members and trustees - are you ready for 30 June 2018?

14 June 2018
With the new financial year almost upon us, are you ready for it?  Self-managed superannuation fund (SMSF) trustees have some critical reporting dates coming up. The first of these occurs on 30 June 2018 and thereafter quarterly reporting kicks in. 

Consolidating super - don't blow up your insurance!

1 June 2018
There’s growing concern around the fees associated with managing super, with many failing to see the wood from the trees when it comes to the difference between fund management fees and insurance premiums.

Young Australians beware of the impact of super without insurance

24 May 2018
Most Australians breathed a sigh of relief in the 2018 Budget that few changes were made to super. The government did however place some focus on limiting the amount of superannuation being eroded by fees.

Fundamentals of Financial Success | Pillar 4 – Engage with your Super

1 November 2017
As discussed in part one to three of the series The Six Fundamentals of a Strong Financial Plan, it's important to remember that there are always going to be events that are happening locally or internationally that will impact financial markets.

Farm Succession - How to Generate Income When Retiring From Your Farm

20 September 2017
One question I am often asked by my farming clients when considering farm succession is...

Downsizer contributions

10 August 2017
The 2017 federal budget was a quiet one for superannuation with no substantial reforms or tinkering with the system. One reform announced was the ability for amounts to be contributed to superannuation over and above the current limits where individuals are downsizing their primary residence. 

Superannuation contribution opportunities and traps

10 August 2017
The first issue to be aware of is the reduction in super contribution limits that start from 1 July 2017.

Choosing capital gains tax relief

10 August 2017
A key component of the Fairer Super reforms is the ability for superannuation funds impacted by the reforms to revalue their assets to their current market value for taxation purposes.

Transfer balance cap reporting

10 August 2017
The introduction of the $1.6m cap on pension accounts will result in additional reporting requirements to the ATO by SMSF trustees.  All SMSF’s that are paying retirement pensions to their members will be required to report these to the ATO, even if the total balance of the members pension is less than $1.6m.

Superannuation - there can be traps for the unwary

25 July 2017
In the lead up to 30 June no doubt cash flows and taxation projections were a focus for many SME owners.  One of your plans could have been to contribute a sum of cash into superannuation and claim a tax deduction. 

Self Employed - Boost Your GESB Super with PAYG from the WA State Government

26 June 2017
If you are a former employee of the WA State Government and now earn your living through your own business, you’ve probably been enjoying some of the pay-offs of the contributions rules afforded to you as a result of being a member of the GESB West State Super Fund.

Impending Superannuation Changes

22 June 2017
On the eve of the new financial year let’s take a look back on some of the key Superannuation Changes that will begin to affect people from 1st of July 2017. In some cases, you’ll need to take action well before then.

How much money do I need to start a self-managed super fund (SMSF)?

5 June 2017
  The decision to take control of your superannuation is not a simple one, with many factors to take into account, such as the minimum balance required.

Last chance for self-employed to maximise super contributions to GESB

8 May 2017
If you’re a doctor, engineer or teacher who has previously worked for the West Australian State Government, you may be aware of the changes to superannuation that will significantly impact one of the best retirement strategies available to you since John Howard’s $1m boom.

Concerned about super changes and wonder if you can still retire early?

2 May 2017
With all the changes to superannuation and Centrelink that have taken place it’s understandable that Australians are concerned about being able to access their retirement nest egg when they want to. Recently I read the following question in a financial publication that really intrigued me:

Superannuation Changes - Your questions and our answers | Part 2

2 March 2017
Following on from Part one of Superannuation Changes -  Your questions and our answers, below we explore some other key questions regarding Capital Gains Tax Relief, Estate Planning and Contribution Issues.  

Superannuation Changes - Your questions and our answers | Part 1

2 March 2017
Below we explore some of the most common questions our team has been asked about the upcoming changes. Part one hones in on concerns around the Transfer Balance Caps. Part Two examines other key areas.

How the upcoming superannuation changes will impact you

31 January 2017
Superannuation changes, which take effect on 1 July could have a massive impact on workers, particularly the wealthy, and many may end up paying more tax. The news is not all bad for Australians, and there are some opportunities to make smart financial decisions now that will put you in the driver's seat for your retirement.

Managed Funds vs. Direct Shares | Part 2

27 October 2016
“I have a DIY (Do it yourself) fund, why should I use ‘managed’ funds?”

New superannuation legislation – where do you stand?

18 October 2016
Government releases more superannuation legislation

Managed Funds vs. Direct Shares | Part 1

3 August 2016
I have a DIY (Do it yourself) fund, why should I use ‘managed’ funds?

Choosing a Corporate or Individual Trustee

3 August 2016
When establishing an SMSF the members have a critical decision to make. Do they set it up as individual trustees or as a company appointed as a corporate trustee, with the members being directors of the company? We explore what to remember when making this decision.

SMEs eye the ABCs of SMSFs in retirement

11 July 2016
Much of the whopping 25 percent jump in the uptake of bank debt recorded within our thinkBIG survey 2016, may be attributed to an increasing number of SME’s buying their own premises.

Case study: Oz Trees

6 July 2016
Mark Prascevic, owner of Oz Trees in Colac, Victoria, has experienced the highs and lows of owning and operating a native plant business.

Are you SuperStream compliant?

26 May 2016
The SuperStream standard is part of the government’s Super Reform package.  It will provide a consistent, reliable electronic method of transacting linked data and payments for superannuation.

Budget 2016 for Superannuation

4 May 2016
The Government took a hard, and potentially unpopular line on superannuation tax concessions in the 2016/17 Budget, with changes including:

Superstream

1 April 2016
The government has introduced legislation surrounding the method of payment for superannuation contributions. This legislation is called “SuperStream” and applies to employers, employees and superannuation funds (i.e. self-managed superannuation funds). Self-Managed Superannuation Funds 

End of financial year - four months to go

4 March 2016
The season has changed to autumn and it is four short months to the end of the financial year. The press is constantly talking about tax reform, what is in, what is out, what is being considered.

Tax-free super under age 60?

4 March 2016
There has been some media coverage recently about a tax savings strategy for those aged 56 to 59. We’re taking a cautious approach.

Superannuation – a due date that cannot be negotiated

3 December 2015
To the surprise of many employers, missed, or late, superannuation payments can have significant financial and administrative consequences for the business.

Managing change at board and executive level

10 August 2015
RSM recently held a lunch featuring a panel including Paula Dwyer, Professor Judith Sloan and Fiona McGauchie with Catherine Walter as MC to discuss how to manage change at board and executive level. This is a synopsis of the event.

Investment vehicles minimise taxes

4 August 2015
Your choice of investment structure can save you a lot on taxes. Available structures include self-managed superannuation funds (SMSFs), family or unit trusts and companies, as well as holding property individually or in joint names.

Tax and your investment property

22 July 2015
When purchasing an investment property, the choice of ownership structure is important to ensure you minimise the effects of taxation. Available structures include self-managed superannuation funds (SMSFs), family or unit trusts and companies, as well as holding the property individually or in joint names.

Tax and your investment property

22 July 2015
When purchasing an investment property, the choice of ownership structure is important to ensure you minimise the effects of taxation. Available structures include self-managed superannuation funds (SMSFs), family or unit trusts and companies, as well as holding the property individually or in joint names.

Superannuation rules flux drive SME owners to SMSFs

15 July 2015
Superannuation continues to be an area of political discussion and potential change. While investment returns are generally good, the system’s unpredictability undermines people’s confidence.

2015 year-end superannuation action

16 June 2015
Contribution planning For concessional contributions such as employer, salary sacrificed or personal deducted contributions, the cap has been indexed and therefore increases in the 2015 year. For individuals under 50 years of age, the concessional contribution cap is $30,000 whilst those over 50 are able to contribute up to $35,000.

Preservation age and building retirement savings

25 May 2015
Commonly people see their retirement as the time to access their superannuation balances. However, when you can access your super benefits actually depends on your preservation age, which currently stands at age 55. This will be changing with regulations pushing the preservation age up to 60 for people born after 1st of July 1964.

Take care with aged care

24 May 2015
The older generation has worked hard and are often frugal by nature. Not surprisingly they have exhibited a strong tendency to save for later life. Travel and comfortable living are often the main goals and after this the costs of retirement tend to diminish.

Aged care, how much could it cost?

13 May 2015
These days when people move into an aged care home they must pay a basic daily fee of $47.49. They may also be required to pay a means tested daily care fee based on assets and income, an accommodation payment and fees for extra optional services.

2015-16 budget for superannuation

12 May 2015
Contrary to the announcements made by the Labor Party in April, the government confirmed in the Federal Budget that no tax changes will be made to superannuation this year.

What aged care means

29 April 2015
We know there is high probability of entering aged care in later life. Quite likely, due to ill health at that time we will be unable to cope with all the decisions and forms required at that time. Making sure we have nominated somebody as our trusted financial power of attorney, long before that event, will make the process so much easier.

Answer could be multiple SMSFs

31 March 2015
I am often asked the question, can or should my adult children be members of my self-managed superannuation fund (SMSF)? In practice there is no hard and fast rule when it comes to including children.

Tax reform 2015 – a background

30 March 2015
The Abbott Federal Liberal-National Party Coalition Government was elected in September 2013 on a platform of 'economic repair' which included promises to conduct two related white paper processes leading into the next federal election: a white paper on tax reform, and a white paper on the reform of Australia’s Federation.

Clarify death taxes

19 March 2015
We know that if superannuation passes to our spouse or children under 18 on our death, there is no tax to pay. On the other hand, some or all of our superannuation benefits will be taxed at either 15% or 17% when it passes to an independent adult child.

Super is so much more

26 February 2015
Yes, we have had our self-managed superannuation fund for a number of years. Our accountant looks after the tax each year, we sign a few papers, pay a few invoices and generally everything is pretty straight forward.

Tips and traps with super

11 February 2015
You have worked hard and accumulated a decent amount in your self-managed superannuation fund. Besides holding a cash component to pay the bills and your minimum annual pension, you have also built up other assets for your retirement.

Reduce tax on your super

21 January 2015
Investing your hard earned monies into superannuation can have one serious sting in the tail. Put simply, your non-dependent children will pay 17% on the taxable portion of your superannuation benefits when you die. The aim with any tax impost is to reduce it as much as possible, whilst complying with the laws of the day.

How to combat super death tax

13 January 2015
Many years ago we had death taxes, otherwise known as probate duty. This tax was imposed by both State and Federal governments with gift duties thrown in just to make sure you did not die with no assets and avoid paying probate duty. Because farmers are asset rich and income poor, death duties were seen to be very unfair.

This article has been prepared by RSM Financial Services Australia Pty Ltd ABN 22 009 176 354, AFS Licence No. 238282.

As everyone's circumstances are different and this article doesn't take into account your personal situation, it is important that you consider the above in light of your financial situation, needs and objectives, and seek financial advice before implementing a strategy.
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