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%.

New Rules for 2009 / 2010

 In the 2009 Federal Budget, changes were announced to take effect from July 1, 2009 as a temporary measure.

A flat $ 25,000 per person will be allowed for those aged less than 55, with $ 50,000 allowable for those 55 and over. Undeducted Contributions of $ 150,000 per year are permitted regardless of age.

For death benefits, payments made to dependent beneficiaries will have the first $145,000 paid tax free in 2008-09, and $150,00 paid tax free in 2009-2010. The remainder is taxed at 16.5 %. Non-dependent beneficiaries will have the first $145,000 (or $150,000) taxed at 16.5 % and the remainder at 31.5 %.

For bona fide redundancies, for 2009-2010, the tax-free component is the first $7,732, with $3,867 for each complete year of service.