To put it simply, Superannuation Guarantee, or SG for short, is a contribution that your employer is required to make into your super account.
This scheme was introduced to help Australians build up and save for retirement, and this money is ‘preserved’ until you’re eligible to withdraw it.
For most of us, our super will be one of our largest assets so it’s important to be aware of what you’re entitled to. And since the total Australian Superannuation assets equalled $2.7 trillion at the end of the March 2020 quarter1, it pays to pay attention.
How much and how often?
SG contributions are calculated as a percentage of your ordinary time earnings, and currently that percentage is 9.5%.
Employers must pay your super into your account once a quarter (every three months) but it can be more frequently like fortnightly or monthly. If you are not sure you can always ask your employer how often they pay yours. The Vision Super app will also send you a notification every time a payment is made, if you have registered, which makes it easier to stay on top of your contributions.
To see how much super you’re being paid, you can:
- Check your payslip, or;
- Check with your super fund by logging in online or contacting them.
Just remember, your payslip will show the superannuation amount accumulated during that time period, however your employer may pay it into super on a different schedule.
Who is eligible?
In most cases, you're eligible to receive super from your employer, even if you have a casual job. As long as you:
- earn $450 or more (before tax) in a calendar month
- are aged 18 or over
If you're under 18, you must be paid more than $450 or more (before tax) per calendar month and work more than 30 hours a week.
A lot of us can choose the super fund our employer contributes into. So, if you have the option of choosing your own fund pick one that suits you and will help you achieve your goals. You can let your employer know by filling out and giving them the Superannuation Choice of Fund form. Remember this if you change jobs, your super doesn’t also have to change. You can stay with us by providing your new employer your choice form.
Putting in extra
Of course, the amount of money your employer pays into your super may not be enough for you to retire comfortably, so you have the option of choosing to make additional contributions into your super. You can make additional payments through your employer in the form of salary sacrifice, or alternatively you can make voluntary contributions to super from your income or savings. Just be mindful that there are caps on how much you can put in, which you can read about on the ATO website here.
The right advice, when and where you need it
Getting advice about your super doesn’t have to be scary. Vision Super’s fully qualified advice team are here to help you on every aspect of your super, from the simplest question through to a comprehensive financial plan. To learn more, head to visionsuper.com.au/advice
General Advice Warning
This article includes general information and does not contain any personal advice. It is provided for general information only, to help you understand Vision Super’s products, services, policies and procedures. The information was correct at the time of publication, but may have changed since. It does not take into account your personal objectives, financial situation or needs. You should consider whether it is appropriate for you and your personal circumstances before acting on it and, if necessary, you should seek professional financial advice. Before making a decision to invest in any Vision Super product, you should read the appropriate Vision Super Product Disclosure Statement (PDS). Past performance is not an indication of future performance.
Vision Super Pty Ltd ABN 50 082 924 561, AFSL 225054 RSE Licence L000239 is the Trustee of the Local Authorities Superannuation Fund ABN 24 496 637 884. Level 15, 360 Collins Street, Melbourne VIC 3000. PO Box 18041, Collin Street East VIC 8003.