In 1988, I bought $750 worth of special $5 coins, minted to commemorate the opening of Australia’s Parliament House. I figured it was a one-way bet to investment success. They were legal tender costing $5 and would always be worth at least $5, and if they became sought-after by collectors, the sky was the limit. I ... Read more
How super works
A Super Guide
Compulsory superannuation has been around since 1992, but there is still a lot of confusion about its purpose and how it works.
Our Super Guide for beginners tries to answer everything you wanted to know about super but were too afraid to ask.
We also discuss super’s role in Australia’s retirement income system. We cover compulsory and voluntary contributions and how they are taxed, and how your savings are invested and taxed inside super. And finally, when and how you can withdraw your retirement savings and what happens to any super that’s left when you die.
Click on the following links to learn more about some of the fundamentals about superannuation:
- Latest super and retirement changes
- Super for beginners
- Super rates and thresholds
- Superannuation strategies
- Superannuation Guarantee rules
- Comparing super funds
- How-to Super Guides
- Superannuation Q&As
- Super Quizzes
Learn more about the aspects about how super works in the following SuperGuide articles:
Set out below are all SuperGuide articles that relate to How super works.
Protecting Your Super package: What you need to know
The Protecting Your Super Package of reforms start on 1 July 2019. These reforms are designed to protect your super accounts from being eroded by insurance policy fees and premiums that you may not require, as well as help to consolidate your low balance super accounts. This article outlines each of the key reforms ... Read more
The rules of superannuation: Your guide for 2019/2020
When you mention super, most people shake their head and mutter about the constant rule changes. Looking back over the past few years it’s a fair comment, with many significant changes occurring – and many more proposed but never legislated. If you are wondering how those changes have affected your super and ... Read more
Does the ATO do enough on unpaid super?
For many years SuperGuide has regularly received angry emails from readers about their employers not paying their super entitlements and the ATO being unable to help recover the money. Many employees have lost significant amounts of workplace entitlements because their employer has either not paid their SG, or has ... Read more
What should the federal government’s super and retirement planning priorities be?
The superannuation world is ever-changing, which is why it’s so important to stay up-to-date with all the rules, caps, rates and thresholds. While many of the changes can be seen as the government fiddling with the rules or shifting the goalposts, many changes can be positive. Government policy is never flawless and ... Read more
Three retirement income priorities for the returned Morrison Government
The Morrison Government confronts a big agenda when it comes to retirement incomes. They need to implement the superannuation recommendations of the Hayne Royal Commission and respond to the Productivity Commission inquiry into superannuation costs. And Treasurer Josh Frydenberg hopes to establish an independent review ... Read more
Superannuation for the self-employed
Superannuation is optional for self-employed Australians, even though it’s compulsory for employees via the 9.5% employer superannuation guarantee. If you’re one of the approximately 10% of Australians who are self-employed, it’s totally up to you to provide for your own retirement. This can place self-employed people ... Read more
The Capital Gains Tax (CGT) Cap
The CGT cap is the maximum lifetime amount of capital gains that you can exclude from your non-concessional (after-tax) super contributions cap. The lifetime CGT cap for the 2018/19 financial year is $1,480,000. How does the CGT cap operate? You can only include capital gains from the sale of small business assets in ... Read more
What are lifecycle super funds, and how do they perform?
Click here to jump to the latest returns for lifecycle super funds. Close to 70% of Australians with super in one of the major funds are invested in their fund’s MySuper option, the default option for employees who don’t choose a super fund. If you are a member of a retail fund, this is most likely a lifecycle product ... Read more
Monthly super fund performance Reckoner: Monthly returns for 5 investment categories
In our reckoner below you can view the median monthly investment returns for 5 superannuation investment options. We’re grateful to Chant West for providing the statistics that power the reckoner. See also: Super fund performance: Monthly returns to April 2019 Important: Superannuation is a long-term investment. While ... Read more
Super fund performance: Monthly returns to April 2019
In this article you can learn the monthly performance for super funds over 5 investment options going back to July 2015. We’re grateful to Chant West for providing the statistics in this article. For annual and long-term super fund performance see the following SuperGuide articles: Super fund performance: Financial ... Read more
2019 Federal Election: Coalition policies on super, tax and retirement
Following the surprise coalition victory, refresh yourself on what the Liberals and Nationals pledged on super, tax and other retirement measures. This article summarises the Coalition's main election announcements related to superannuation, tax, investing and matters that may affecting your retirement planning. Many ... Read more
What are the super and Age Pension rules for same-sex couples?
Australia has seen some momentous changes when it comes to the recognition of same-sex relationships in recent years, with the passage of the same-sex marriage legislation in December 2017 marking one of the most significant milestones. The new legislation has had less impact when it comes to super than in many other ... Read more
How much super do I need to retire?
No doubt you have heard people say you need a million dollars (or some other nice round figure) in superannuation before you can afford to retire. Often they are the same people trying to sell you investment products or advice. Don’t pay attention to them, because there is no magic number. The amount of super YOU need ... Read more
Asset Sector Performance Reckoner
SuperGuide’s Asset Sector Performance reckoner allows you to compare the investment performance of various asset classes over the short, medium and long term. The reckoner covers 12 asset classes over 1, 3 and 5 years and, where available, also over 7, 10 and 15 years. The asset classes and maximum performance ... Read more