If you’re an Australian citizen living or working in Brisbane, your employer is legally required to make superannuation contributions on your behalf. As an employee, the current superannuation rate is 9.5 per cent. This means that your employer must make compulsory superannuation contributions to the value of 9.5 per cent of your salary or wage into your nominated super fund.
What is superannuation?
In Australia, superannuation contributions are compulsory for all employers. In 1992, the Australian government made superannuation mandatory for all Australians. Regardless of where you live in Brisbane or around Australia, if you’re an Australian citizen employed and working in Australia, your employer must currently legally contribute 9.5 per cent of your annual salary into your nominated superfund each quarter. The government has plans to increase the current superannuation rate on a sliding scale to 12 per cent by 2025.
Before superannuation was compulsory in Australia, retirees relied on their savings and a government pension to help them maintain their quality of life. With the population now living approximately 20 years longer in retirement, superannuation is becoming an increasingly important income source for retirees in Brisbane and all across Australia. Accumulating enough superannuation over your working life is key to maintaining your quality of life in retirement and reducing your reliance on the government pension.
What to look for in a superannuation fund?
Planning for retirement is something that all Australians, including those who live in Brisbane, should start thinking about at the beginning of their working life. It might seem futile to plan for something that’s 30 or even 40 years away, but superannuation accumulates over time and getting it right is crucial for a comfortable retirement. When you’re looking for a superannuation fund, it’s important that you do your research to find the best superannuation fund by comparing fees, performance, insurance, returns and other factors like accessibility.
You may come across different types of super funds like retail funds, industry funds, public sector funds and corporate funds. Depending on your industry and employment, not all of these options will be available to you. Retail funds are for-profit funds that usually have shareholders and are mostly run by banks. Industry super funds were originally set up for workers from a specific industry, but are now open to all Australians, including those who live and work in Brisbane. Government funds are mostly aimed at federal or state government employees, and corporate funds are usually organised specifically by an employer for its employees. Depending on how much super you’ve accumulated, you also have the option of opening a self-managed super fund.
The type of superannuation fund you choose ultimately depends on your financial situation, the industry you work in and your overall life circumstances. There’s no such thing as a one-fund-fits all – it’s more about taking the time to compare your options to find a fund that suits you.