What Is Superannuation?

What Is Superannuation?

Superannuation is money set aside by your employer over your working life for you to live on when you retire. You need super because the more you save, the more money you will have for retirement.

You can only withdraw your super money under specified conditions, such as when you retire or reach the age of 65. Superannuation advice has proven to be an effective form of retirement planning since it makes saving feel passive rather than active.

How Do I Save a Superannuation?

Most employers make ‘contributions’ to your super account on your behalf. This is known as ‘the super guarantee. These payments are paid in addition to your salary and wages. There are laws governing how much super your employer is required to pay.

From July 1, 2022, your employer may be required to contribute to your super regardless of your monthly salary. To be eligible, you must work more than 30 hours a week if you are under a certain age.

When you are paid salary and wages, your eligibility is determined, not when the income is earned. This means that if you are paid on or after July 1, 2022, you will be paid super regardless of your earnings. This is true even if some of the pay periods begin before July 1, 2022.

What Is Superannuation?

Since July 1, 2022, to get paid super, you must earn $450 or more (before tax) in a calendar month. This is true whether you work casual, part-time, or full-time hours and whether you are a permanent or temporary resident. Even if you have an Australian business number (ABN), you may be eligible if you are a contractor who is paid largely for labor.

How Is Money Deposited into My Superannuation Account?

Your employer is required to contribute a minimum amount into super based on the current super guarantee rate of your ordinary time wages. This is expected to gradually increase in the future years.

Ordinary time earnings are what you typically earn for working regular hours, and they include over-award payments, certain bonuses, allowances, and certain paid leave. Overtime pay is typically not included in regular hourly earnings.

You can also contribute your own money to your super savings, and the Australian Government will sometimes contribute as well. Good retirement planning with figures from a retirement planning calculator according to your earnings will determine how much will be sufficient for you.

How Do You Pick a Super Fund?

Most consumers have the option of directing their contributions to a specific super fund. If you are eligible, your employer must provide you with a Superannuation standard choice form within 28 days of starting work for them, so you can make your decision in writing.

If you do not select a super fund, your employer may be required to take an additional step to comply with choice of fund laws. If you do not designate a super fund, they may need to contact your Australian superannuation advisor for information on a stapled super fund.

A stapled super fund is an existing super account that has been attached, or stapled, to an individual employee in order for it to follow them as they move jobs. Your superannuation advisor will notify you if your employer requests a stapled super fund, as well as the fund information he provided.

Every business has a nominated super fund, often known as a default fund, where super guarantee payments are made for employees who have not chosen a preferred fund and do not have a stapled super fund.

If you want your contributions paid into an existing super account but can’t recall your super fund account details, you can view all of your super accounts on the taxation office website. Your superannuation advisor will assist you in comparing Super products and selecting a super fund that suits your requirements.

It’s never too early to start talking about your super. Choose your own super fund and participate on a regular basis since this is an effective retirement financial plan, and the decisions you make today will help determine your lifestyle alternatives in the future.

Government Payments to Superannuation

If you make a low or middle income, you may be eligible for Australian Government super contributions. Submit your tax return, and they’ll determine whether you are eligible for a super co-contribution payment of up to $500.

How Do I Obtain My Superannuation Benefits?

When you retire, you can usually access your super money. However, under some circumstances, such as severe financial hardship or specified medical problems, you may be able to access your super savings early.

Whether you truly need part of your conserved super sooner, check with your super fund to see if you can use it before applying. Your superannuation advisor would be in the best position to inform you of these possibilities.

When guiding clients through SMSF setup, superannuation advisors must consider the upfront and ongoing costs. These expenses can include professional advice fees, legal fees, SMSFsetup costs, SMSF software subscriptions, annual audit fees, and compliance services. A comprehensive understanding of these costs is essential to effectively assist clients in managing their superannuation.

What Is Superannuation?

Superannuation for Temporary Residents Departing from Australia

If you are a temporary resident working in Australia and are entitled to super, your employer is required to make super guarantee contributions on your behalf. You may be paid your superannuation after you leave Australia. 


How Do You Keep Track of Your Retirement Funds?

Providing your Tax File Number (TFN) to your super fund can make it easier to track your super, transfer it across accounts, and receive super payments from your employer or the Government. Check the statements you receive from your fund to see if they have your TFN.

Can I Bring Super Money from Abroad?

You can bring Super money from abroad, but if you are bringing your own money or pension funds from another country, you should be aware of the unique tax requirements. Consult with your financial advisor, Australian superannuation advisor, or migration agent.

Final Thoughts

Getting a Superannuation is a great addition to your retirement finance plans. It makes saving seamless, and with the right superannuation advisor, investment becomes better. However, there are so many intricacies involved with the Australian super, and you’ll need professional guidance to avoid hefty and redundant taxes. 

If you need a superannuation advisor here in Sydney, why not contact us at Omura? We offer top-notch financial advisory services and will provide you with the most suitable superannuation strategies and help you through the ever-changing rules that characterize superannuation. 

Who is Authorised to Provide Superannuation Advice?

Who is Authorised to Provide Superannuation Advice?

It is the duty of an experienced financial or superannuation advisor to equip customers with valuable superannuation advice that will make a great difference in how they approach their super funds and retirement planning. In order to provide superannuation advice in Australia, a person or organization must either obtain an Australian Financial Services Licence granted by the Australian Securities and Investments Commission (ASIC) or be the approved representative of a license holder. If you are seeking a licensed authority, then get in touch with Omura Wealth Advisers. You are free to check 

Because of the complicated and ever-changing superannuation landscape, receiving the right superannuation advice Australia is critical to assisting clients in planning for their best financial future. Before receiving financial guidance, consumers should have a defined goal in mind.

Related: Benefit Disparities for Women in Superannuation

What kinds of recommendations do superannuation advisors usually provide to their clients?

Superannuation advisors can give two forms of advice to their customers. particular advice that is tailored to each client’s financial condition and aspirations, as opposed to general counsel that does not address personal problems or goals. Personal advice can be as simple as a single topic such as superannuation contributions, or as complex as insurance, superannuation investments, or retirement planning.

Clients can be given a financial services handbook that contains information on the firm or individual offering financial advice. The FSG describes the fees charged, the financial services provided, and how the service provider will handle complaints.

All superannuation advisors have a legal responsibility to operate in their customers’ best interests. This means that while formulating strategies and offering personalized advice to customers, advisers must prioritize their clients’ interests over their own.

How can I locate an experienced adviser?

You can find a superannuation advisor Australia by searching through their professional organizations when seeking superannuation advice. To confirm our authenticity or that any other firm claiming to be a registered or licensed financial adviser kindly check with the Association for Financial Planning. Contact Omura Wealth Advisers which is based in Sydney, Australia to chat with a licensed, fully qualified, and experienced Superannuation adviser who has your best interests in mind. Check out our website to discover more about our advisers and their credentials, or here to see our entire list of services.

Getting your unique superannuation advice: Everyone’s financial path is unique, so we’re here to help you create the future you desire by providing personalised superannuation guidance.

Online Calculators 

With our online calculators, you can plan with confidence, from calculating your super account balance at retirement to understanding your insurance coverage.

Webinars and Superannuation Education

Attend a webinar to learn from our experts on how to make educated super decisions.

Simple Suggestions

Speak with an Omura Wealth Advisers team member over the phone for easy personal questions about your Australian superannuation account, such as choosing an investment, and adding to your super, personal insurance, and retirement financing alternatives.

Complete financial advice

For more personalized and detailed advice, you may meet face-to-face or through a secure video connection from the comfort of your own home with a highly qualified financial consultant. Register your inquiry on our website to find an adviser from Omura Wealth Advisers’ top team members.

Who is Authorised to Provide Superannuation Advice?

Financial advice costs

Simple superannuation advice: most over-the-phone advice concerning your Australian Superannuation account is free with most of our consultation plans.

A minor cost may be payable from your end for more extensive retirement counseling, such as a transition to retirement and/or opening a pension account.

Complete superannuation advice: Your initial visit with an Omura Wealth Advisers professionally certified financial adviser is complimentary—and all about you. It addresses your personal and financial circumstances, as well as what is essential to you. Your initial meeting will not include any personal financial advice.

If you decide to proceed with personal financial advice, you will be charged a one-time fee for the production of individualized advice based on your specific situation. The exact cost will be agreed upon upfront in writing and will vary depending on the type and complexity of the assistance.

What Does Superannuation Advice Entail?

Knowing you Your initial consultation is free and entirely focused on you. It addresses your personal and financial circumstances, as well as what is essential to you. Your adviser can then assist you in determining the kind and complexity of the guidance you require, as well as discussing any associated fees. Your initial meeting will not include any personal financial advice.

Making a Strategy: Your consultant examines potential possibilities and produces a personalized superannuation strategy based on facts from your initial consultation and your agreement. This describes the optimal course of action to fulfill your personal and superannuation goals, as well as any associated expenses.

Plan presentation Your superannuation consultant will summarise the suggestions in your personalized superannuation plan and explain how the advice aligns with your objectives and is in your best interests. They will also answer any questions you have concerning the advice and the next measures you must take.

Taking action: Superannuation advice is only useful if it is followed through. Once you are happy with your tailored superannuation strategy and suggestions, your Omura Wealth Advisers consultant will hold your hand and keep you informed at every stage, as well as what lies ahead.

If you’re searching for a superannuation expert, we’re your best bet. We will personalize your answer to your specific scenario, and we will debunk every obstacle that has caused you anxiety and uncertainty. We will also assist you in maintaining a happy and comfortable lifestyle during your retirement years.

Benefit Disparities for Women in Superannuation

Benefit Disparities for Women in Superannuation

If you’re a woman making a living in Australia, you’re likely to retire with fewer superannuation benefits than your male counterpart. This disparity is not only unjust, but it can also reduce a woman’s financial independence in retirement. It is especially concerning because women live longer than men and hence require more money to fund their retirement years.

Do you know that around 80% of women who did not prior take proper superannuation advice, retire with insufficient superannuation assets to live a reasonable lifestyle? In fact, when women retire, their average superannuation account balance is roughly $70,000 less than that of males. This might be due to a variety of factors. Many women, for example, leave the workforce to have children or care for family members, and they are also more likely to work part-time or for low pay.

Women are also less likely to gain from contributions over the mandatory superannuation guarantee rate on average. Whatever the cause, there is no doubt that women have a significantly greater challenge when it comes to saving for retirement. This is why it’s critical that all women take basic actions to increase their super savings.

Benefit Disparities for Women in Superannuation

There are two major reasons why women have fewer superannuation benefits:

  • Women continue to earn less than men on average, and because mandatory employer payments are calculated as a percentage of salary, women receive fewer benefits. Women continue to be paid less than males in many areas, despite current legislation and changing views. 
  • Maternity leave and time off to raise a family frequently disrupt a woman’s professional life, and it is often women who take time off to care for elderly parents.

Many women who take time off to raise a family can take advantage of the Commonwealth Paid Parental Leave Scheme, but the required superannuation contribution does not apply.

What does this imply for you?

If you leave with less superannuation, you may be more dependent on the government-age pension once you retire. This not only has the potential to diminish your quality of life in retirement, but it also limits your independence.

What can you do as a woman to maximize your superannuation?

There are three critical actions you can take when working to ensure you get the most out of your super:

  • Superannuation advisors advise that you shouldn’t think about super as something you can think about after you retire – it may be too late by then. The sooner you start taking charge of your super, the better off you’ll be in retirement. If you have more than one super account (as is often the case if you’ve worked at multiple locations), consider combining them into one low-fee, member-focused super fund. Contact Omura Wealth Advisers for more information. As a result, you may avoid paying various management costs. Consider the following before making the switch:
  1. Can you acquire the same level of insurance coverage in your selected fund?
  2. Can your employer contribute to the fund you’ve chosen?
  • While working, contribute to your personal super fund. Sure, it may mean a slight decrease in your monthly salary now, but there may be tax advantages to voluntary super payments, and you’ll have more money to enjoy when you retire. Furthermore, if your annual income is less than $57,000, the government may donate up to $500 to your super account. Depending on your income, this co-contribution might be as much as 50 cents for every dollar you contribute after tax.
  • Talk to your partner about how they can help you boost your super by making a spouse contribution to your super account or arranging for contribution splitting from their job.
Benefit Disparities for Women in Superannuation

How can this be fixed?

To overcome the inadequacy of the superannuation system to deliver a safe and sustainable retirement income for women, a suite of alternatives is clearly necessary.

According to some Australian superannuation advisors, superannuation taxation settings need to be significantly rebalanced. The huge tax reductions on superannuation that accrue to high earners and males more than women were emphasized. It has become a platform for massive taxpayer-subsidized wealth growth. Because of these policy conditions, there is a severe gender disparity.

One of the significant benefits of engaging a superannuation advisor in Australia is the opportunity to set up a Self-Managed Superannuation Fund (SMSF). With an SMSF setup, individuals gain greater control over their retirement savings, allowing them to tailor their investment strategy and potentially achieve higher returns.

Another opinion from a superannuation advisor is that salaries will be the most important motivator in fixing the issue. Obtaining wage equality is what will decrease the gap in retirement income disparity.

Even if we eliminated the gender salary gap, there would still be a discrepancy in superannuation. Other things are more vital, such as introducing policies that offer women who become financially reliant on their partners in retirement some influence over how the superannuation money they rely on is used and maintaining the age pension’s ability to provide a fair quality of life.

We shifted from a more gender-equal to a more gender-unequal retirement income system when we shifted our retirement income system to superannuation with the explicit goal of diminishing the role of the age pension.

Some experts feel that we should investigate caregiver credits or other comparable ways for the government to recognize unpaid effort.

What action can the government take?

The burden of solving the problem should not fall only on women. Government action is required to make super more equitable for women.

  • Avoid any more delays in boosting employer superannuation contributions to 12%.
  • Paternal leave, like all other forms of leave, is subject to superannuation.
  • Ensure that tax breaks are well thought out and balanced.

Address your concerns about retirement income

Women’s top worries are: running out of money in retirement and becoming a bag lady. Even if you’re close to retirement, it’s not too late to optimize your super. You may speak with an Omura Wealth Advisers superannuation advisor about what you can do now to maximize your financial freedom when you become older.