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 2019/20 financial year is $1,515,000. How does the CGT cap operate? You can only include capital gains from the sale of small business assets in ... 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.
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 the 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 September 2019ImportantSuperannuation is primarily a long-term ... Read more
Super fund performance: Monthly returns to September 2019
In this article you can discover the latest monthly performance for super funds over 5 investment options. 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 over 27 financial years (to ... Read more
Super news for October 2019
This month we look at the new proof-of-life certificates required for pensioners overseas, the launch of Australia’s first independent superannuation consumer advocacy organisation, the announcement of a major review of Australia’s retirement income system and we highlight the need to check your insurance and stay safe ... Read more
Superannuation Guarantee rules for employers
If there’s one thing guaranteed to have employers pulling their hair out, it’s red tape. Unfortunately, your obligation to pay super to employees comes wrapped in red tape and slip-ups can be costly. So what are the rules? The Superannuation Guarantee (SG) is the official term for compulsory super contributions made by ... Read more
How to teach your kids about super
It’s safe to say that young adults in Australia today are unlikely to have a burning interest in super and who could blame them. Travel, study, first love, first job, first home are way more pressing issues. But if you are a parent of one of these young adults – or a grandparent, aunt or uncle – you probably wish you ... Read more
Super fees and returns calculator
Hands up if you know what fees your super fund charges? No idea? You’re not alone. Most super fund members are aware that being in a fund with superior investment performance will mean a bigger retirement balance. One of the key findings of the Productivity Commission report on super was the negative effect being in a ... Read more
5 questions about superannuation the government’s new inquiry will need to ask
The government’s new retirement incomes review will need to work quickly.On Friday Treasurer Josh Frydenberg said he expected a final report by June, just seven months after the issues paper he wants it to deliver by November.The deadline is tight for a reason. In recommending the inquiry in its report on the ... Read more
Government retirement incomes inquiry puts superannuation in the frame
The government has announced very broad terms of reference for its inquiry into Australia’s retirement income system, which will trigger fresh debate about the planned future rises in the superannuation guarantee rate.Treasurer Josh Frydenberg and Assistant Minister for Superannuation Jane Hume said in a statement ... Read more
7 ways your super fund manages investment risks
Like it or not, investing to grow a retirement nest egg involves taking some risks. Super funds use a variety of strategies to help reduce the inevitable investment risks they face as they work to deliver good investment returns to their members. To help you understand how your fund is investing your super savings, ... Read more
Investment indexes: 5 reasons they matter for your super
When it comes to the investment performance of your super account, funds love to talk about how much they have outperformed the index or benchmark. But what does that really mean? And what the heck is an investment index anyhow? To help you cut through the jargon, here’s an uncomplicated explanation of investment ... Read more
Super scams: What are they and how do you avoid them?
As technology advances, so too do the ways and means by which scammers can extract money from people. Superannuation, self-managed superannuation funds (SMSFs) and individuals’ investment funds are increasingly being targeted by scammers due to the sheer size of the funds available, and advancements in technology which ... Read more
Why big super funds diversify and what you can learn from it
It’s a common saying that we shouldn’t put ‘all our eggs in one basket’. Although it’s a lesson many smaller investors and super savers forget, it’s one large super funds always follow. So, why are large super funds so committed to diversification and what are the lessons smaller investors can learn from ... Read more
Am I eligible for the Australian Age Pension?
Your eligibility for the Australian Age Pension depends upon your age, residency and whether you pass what is known as the “means test”. The Age Pension is one of the ‘three pillars of retirement income’ in Australia – along with superannuation and private savings. It plays a critical role in retirement income for ... Read more