Superannuation remains the most effective way for Australians to save for retirement. As an employer you have obligations to both your employees and yourself to make sure you have it working as hard as possible.
All Australian employers must meet compulsory superannuation obligations in relation to eligible employees. This means:
You need to contribute 9% of an eligible employee’s earnings base to a complying super fund or retirement account, regardless of your business structure. This generally applies to employees between 18 and 69, whose monthly pay is $450 or more (before tax).
You need to make contributions if more than 50% of the value of their contract is for labour.
If your business is a company or trust, you will be an employee and the same conditions apply. If you are a sole trader or partner, the super guarantee does not apply. Instead you can claim a deduction for contributions you make to a fund.
The way in which you meet your superannuation obligations can make a long-term difference to the future financial wealth of your employees. It is also important to consider which offerings best suit your business administration needs.
Colonial First State FirstChoice Employer Super is a superannuation solution that enables you to provide a quality offering to your employees, with a range of investment and insurance options.
Commonwealth Bank's Superannuation Savings Account is a simple, low-cost, low-risk superannuation account designed to help your employees save for their retirement. It’s a no fuss and convenient superannuation plan suitable for small business owners with a small number of employees.
When it comes to superannuation, there’s nothing like professional advice from someone who knows you and your business inside out. That’s why a good accountant is the number one superannuation essential.
For yourself it’s best to meet with a Financial Planner to help you choose the right superannuation option for your unique needs and goals. They can also help you take full advantage of financial opportunities to maximise your investments and work towards achieving the retirement lifestyle you’re looking forward to.
As this advice has been prepared without considering your objectives, financial situation or needs, you should, before acting on the advice, consider its appropriateness to your circumstances. All products mentioned on this web page are issued by the Commonwealth Bank of Australia; view our Financial Services Guide (PDF 59kb).