Tennant Creek

Superannuation is a method of building up a nest egg for retirement, funded by your employer and/or by you. Superannuation either reduces or replaces a pension paid to you by the Commonwealth Government through Centrelink.

Superannuation Guarantee Scheme :

A few years back the Government brought in the Superannuation Guarantee Scheme. Since 1992 your employer has been required to pay a set percentage of your salary into a superannuation fund.

For 2002 - 2003 onwards the rate is 9%.

Superannuation Rules

In the 2006 Federal Budget, changes were announced to take effect from July 1, 2007. Persons aged 60 and over will not be subject to tax on their pension or lump sum payments. Reasonable Benefit Limits will be abolished and the aged based contribution limits will be changed.

From 1 July 2011, a flat $ 25,000 per person will be allowed, with $ 150,000 for Undeducted Contributions per year. If you’re over 50, for the 2011-2012 year, you’ll be still be allowed to contribute $ 50,000, if your super balance is below $ 500,000.

For death benefits, payments made to dependent beneficiaries will have the first $165,000 paid tax free, the remainder taxed is at 16.5 %. Non-dependent beneficiaries will have the first $165,000 taxed at 16.5 % and the remainder at 31.5 %.

For the 2010-2011 year, bona fide redundancies have a tax-free component of the first $8,126, with $4,064 for each complete year of service.