Superannuation

When it comes to superannuation, people normally require a plan that is flexible enough to grow with your life as it unfolds. Our Superannuation assists you with two types of investment options. By super easy cash and by super easy balanced. Super easy cash investment gives the least risk with no minimum time frame, whereas balanced investment helps you put your money in subjective growth sector for Time period of 5 to 7 years for maximum returns. It provides essential and flexible insurance options for permanent disability and even the death of a person. People who pay a little higher marginal tax can get benefits with the option of salary sacrificing. Moreover the application and initial fees at the time of commencing with superannuation account has been terminated completely. It has been completely annualized and it displays the solution for all the financial queries of the customers.

Superannuation Co-Contribution

The superannuation co-contribution is a corresponding payment made by the government directly into superannuation accounts. To encourage savings for retirement for those professionals whose income are lower but they meet the eligibility criteria.

It has made effective from 1st July 2003, for lower income employees who make personal contributions to their own superannuation fund; the government has started incentives up to $1,500 for them. For every $1 contributed, the Government has to pay up to $1.50 completely depending on individual income thresholds. Since then the amount has been lowered and is now a matching contribution up to $1,000 .

The rate of matching over the next five years will be as follows:

Financial Year    Rate of co-contribution For each $1             Maximum co- contribution

2010 – 11                    $1.00                                                                               $1,000

2011 – 12                    $1.00                                                                               $1,000

2012 – 13                    $1.25                                                                               $1,250

2013 – 14                    $1.25                                                                               $1,250

2014 – 15                    $1.50                                                                               $1,500

Income thresholds will continue to be indexed in line with wages.

Regulation of superannuation

Australian superannuation is provided through a trust structure where trustees hold the superannuation assets on trust on behalf of members and owe a fiduciary duty to those members. Trustees have a responsibility to act in the best interest of members while managing the superannuation savings in their care.

A condition of the Conciliation and Arbitration Commission’s 1986 National Wage Case decision was that industry superannuation funds would be required to confirm to the Commonwealth’s operational standards for superannuation.

The Occupational Superannuation Standards Act 1987 (OSSA) prescribed operating standards for:

• the authority of benefits arising from employer and employee’s contributions;
• the preservation of superannuation benefits within the superannuation system until age 55;
• large number of members contributing to the control of superannuation funds;
• The security of members’ benefits (e.g. requirements that funds seeking taxation concessions lodge with the newly established Insurance and Superannuation Commission annual returns certifying compliance with relevant provisions).