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Follow the links to the topic of your choice or just scroll through the page to learn more about Superannuation and Prime Super.
General Questions about Superannuation ... How much superannuation does my employer have to pay?If you are an employee of an Australian company and earn greater than $450 per calendar month, your employer is legally required to make contributions into an approved superannuation fund on your behalf. The minimum amount your employer is required to pay, known as the Superannuation Guarantee Contribution or SG, is governed by the Federal Government's Superannuation Guarantee Act (1992) and is calculated as a percentage of your wage. In some instances, Award arrangements may alter the amount payable. In financial year 2002/2003, your employer is required to pay a minimum 9% of your Ordinary Time Earnings into a superannuation fund. Ordinary Time Earnings include any over-award payments or allowances you may receive, but do not include overtime payments. From 1 July 2002 , the SG will increase to 9%, further boosting retirement savings. The table below provides a SG history, calculated as a percentage of Ordinary Time Earnings:
What if my employer doesn't pay my super?Prime Super provides all members with both an annual and a half-yearly Member Benefit Statement, detailing the amount of superannuation paid into their account by their employer during the period. If you suspect your employer is not paying your superannuation entitlements, contact the Australian Tax Office (ATO) on 13 10 20 for assistance. It is important that you act quickly as any insurance cover you have may cease if you do not have adequate funds available to meet the cost of premiums. Is super compulsory for the self-employed?This depends on how your business is set up. If you are trading as a family trust or you are a director of a proprietary limited company and an employee of that company, superannuation must be paid for you by your employing entity. If you are self-employed and working in a partnership or as a sole trader, there is no minimum amount you are required to pay. However, it is recommended that you make SG level contributions to ensure you can adequately provide for your retirement. Any questions you may have regarding your superannuation entitlements should be directed to the Australian Taxation Office on 13 10 20. Prime Super specifics ... How can I find my lost superannuation?Prime Super can help you find any lost super accounts you may have. Simply complete this form and return it to us. We'll contact the ATO and arrange to have your funds transferred. Alternatively, you can phone the ATO's superannuation hotline directly on 13 10 20 and they can assist you in this process. Will it cost me anything to roll in my existing super from other funds?No. Prime Super does not charge you to transfer money you may have in other super accounts into the Fund. However, be aware that some funds charge high exit fees for people wishing to transfer their super accounts out of their fund. It is a good idea to consider the cost of any exit fees that may apply, as well as the long-term cost of staying in the other fund. When will statements be sent out?Annual statements are sent to all members shortly after the end of the financial year. Half yearly statements, which provide a summary of contributions received into your account during the period, are sent out in February/March each year. Why is there a negative interest rate on my super?If your member statement shows the current interim interest rate is negative and you leave the Fund, your account balance may be reduced. Negative interest rates are often the result of a general slowing of the market place / economy or may be the result of significant international events, such as the tragic events of September 11. Interest rates are subject to change and will often fluctuate during any given investment period. How can I make voluntary contributions?There are two ways in which you can make voluntary contributions to your account: you can set up a periodic payment so that each month a specific amount is automatically deducted from your bank account; or you can send us a cheque at any time, with a note advising us that this is a voluntary payment. In the near future, members will be able to log onto this website and make voluntary contributions online. Payments will be made by direct debit from your bank account. How is my money distributed on death?As death benefits are generally distributed to member's beneficiaries and/or dependants, it is important that you provide us with details of your preferred beneficiaries upon joining the Fund. Ultimately, however, the Trustees of the Fund will make the final decision in respect of any distribution. To nominate your beneficiaries or change your preferred beneficiary details, please contact us on 1800 675 839 for the appropriate form. How is my money invested?Prime Super uses a number of professional investment managers who invest in a wide range of asset classes in accordance with the investment strategy developed by the Fund. A spread of investments across asset classes is used to help increase the likelihood of a balanced rate of return from one year to the next. The Trustee regularly reviews its investment strategy to ensure it meets the investment objectives of the Fund. Fees and taxes ... How is my super taxed?There are three ways in which your superannuation savings are taxed:
Are contributions tax deductible?Yes. Tax deductions are available on contributions made by employers on behalf of their employees and on contributions made by self-employed members. The table below details the maximum deductible contribution amounts for the 2001/2002 financial year:
For self-employed members, the first $5,000 of superannuation contributions is tax deductible. In addition, 75% of contributions above $5,000, but not exceeding a maximum deductible level, as detailed in the table above, are tax deductible. When do rebates apply?Spouse contribution rebate: Some funds accept after-tax contributions for a spouse whose assessable income is less than $13,800 per annum. Contributions up to $3,000 annually qualify for a rebate at a rate of 18% on the contributed amount. The maximum rebate is 18% of $3,000 or $540, and reduces to zero when the spouses income exceeds $13,800. Prime Super recommends you seek professional financial and taxation advice before taking any action. What fees and charges can I expect to pay?For a complete outline of the fees and charges that apply to each of Prime Super's membership categories, please see the Product Disclosure Statement for the appropriate Category. Accessing your super ... When can I access my super?See About Us: Accessing Your Money How is my payout taxed?When you draw all or part of your money out of the Fund, it is subject to taxation by the Federal Government. The amount of tax depends on a range of factors, including: The reason for the payout: different types of benefit payments attract different rates of tax.
Prime Super recommends you seek professional financial and taxation advice before taking any action. What is a financial hardship claim and how do I apply?A Financial Hardship claim generates a benefit payment of no more than $10,000 and can be claimed only once in each 12 month period. To qualify, members must be able to prove six months of continuous unemployment, be registered with Centrelink and provide a Q230 letter (from Centrelink) and a statement of income. Proof of inability to meet current living expenses is also required. Such benefits are taxed at 20% plus a Medicare levy of 1.5%. |
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