Guide to superannuation for individuals
Guide to superannuation for individuals
Overview
Super is money set aside over your lifetime to provide for your retirement. For most people, super begins when you start work and your employer starts paying super for you - these payments are known as super guarantee contributions or concessional contributions.
Super funds invest your money in many things, such as shares, property and managed funds. Complying super funds receive more favourable tax treatment than individuals and companies.
Many government agencies play a role in administering and regulating the super system. The ATO is one of them.
Compulsory employer contributions
Most people are entitled to compulsory super contributions from their employer. These super guarantee contributions must be at least 9% of your ordinary earnings, up to the 'maximum contribution base'. You may also be entitled to choose the fund your super is paid into.
You can check that your employer is paying the correct super and, if necessary, ask us to look into it.
Other contributions
You can boost your super by making your own contributions and you may be eligible for government contributions. You may also want to consider a salary sacrifice arrangement to grow your super.
The amount of tax on your contributions depends on whether they are concessional (sometimes referred to as 'before tax') or non-concessional (sometimes referred to as 'after tax') contributions, and whether you exceed the contribution caps.
Keeping track of your super
SuperSeeker is a free and secure online tool that helps you keep track of your super.
You can use SuperSeeker to:
- check your current super accounts that money has been paid into in the last two years
- find lost super - there are billions in lost super dollars; see if some of it is yours
- find ATO-held super - if the government, your super fund or your employer can't find an account to transfer your super to, we hold it on your behalf
- transfer your super into the super account you want.
To access these services, the first thing you need to do is register online with us. This is an important security measure, given the personal information we display. It also helps to ensure that any transactions made are being made by you.
If you've ever changed your name, address or job, you may have more than one super account or even have some lost super. Combining your super into one account will save you fees and makes it easier to keep track of your super.
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Once you create a secure login you can use it to access SuperSeeker anytime.
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Accessing your super benefits
You can access your super when you reach 'preservation age' and retire, or turn 65 (even if you haven't retired). There are very limited circumstances where you can access your super savings early.
The tax treatment of super and death benefits depends on a number of factors, such as when and how the benefits are paid. They may have both taxable and tax-free components.
If you're a temporary resident working in Australia, you can apply for your super when you leave.
Overview
- Contents: Guide to superannuation for individuals
Compulsory employer contributions
- Eligibility
- Contractors
- Self-employed
- How much your employer should pay
- Checking that your employer is paying the correct super
- Providing your tax file number (TFN)
- Choosing a super fund
- Working overseas
Other contributions
- Concessional (before-tax) contributions
- Non-concessional (after-tax) contributions
- Personal contributions
- Government super contributions
- Salary sacrificing super contributions
Keeping track of your super
- Checking your super contributions
- Transferring your super to one account
- Rollover benefits statement
- Finding any lost or ATO-held super
Accessing your super benefits
- When you can access your super
- Accessing your super before retirement
- Temporary residents
- How tax applies to super and death benefits
- If your fund pays tax for you
- If your fund doesn't pay tax for you
- Pensions and other benefits
Compulsory employer contributions
If you're eligible for compulsory super guarantee contributions, your employer must pay them into a complying super fund.
Eligibility
Generally, you're entitled to super guarantee contributions from an employer if you're between 18 and 69 years old (inclusive) and paid $450 or more (before tax) in a month. It doesn't matter whether you're full time, part time or casual, and it doesn't matter if you're a temporary resident of Australia.
If you're under 18 you must meet these conditions and work more than 30 hours per week to be entitled to super contributions. If you're a contractor paid wholly or principally for your labour, you're considered an employee for super purposes and entitled to super guarantee contributions under the same rules as employees.
How much your employer should pay
If you're eligible for super guarantee contributions, at least every three months your employer must pay into your super account a minimum of 9% of your ordinary time earnings, up to the 'maximum contribution base'. These contributions are in addition to your salary or wages.
Checking that your employer is paying the correct super
If you think your employer isn't paying your super into the right fund, or isn't paying as much as they're supposed to, you should ask your employer about it and check how much your super fund has received. If you still think there's a problem you can lodge an enquiry with us.
Providing your tax file number
You need to provide your tax file number (TFN) to your employer and/or superfund on a Tax file number declaration form. If you don't, your super fund may take extra tax out of your super contributions.
Choosing a super fund
Most people can choose the super fund they want their employer contributions paid into. If you're eligible to choose a fund, your employer must give you a Standard choice form so you can make that choice in writing.
Working overseas
If you take up an Australian employer's offer to temporarily work for them overseas, your employer must continue to pay super contributions for you in Australia. Your employer may be able to apply to the ATO for a Certificate of coverage so neither you nor your employer will have to pay super (or a super equivalent) in the other country.
Eligibility
Your employer has to pay super guarantee contributions for you if you're between 18 and 69 years old (inclusive) and paid at least $450 (before tax) in a month.
If you're under 18, your employer has to pay super guarantee contributions for you if:
- you're paid at least $450 (before tax) in a month, and
- you work for more than 30 hours in a week.
It doesn't matter whether you work full time, part time or casually.
If you are a temporary resident, your employer should pay your super contributions just as they do for eligible Australian resident employees.
Your employer is not required to make super contributions if you're:
- paid to do work of a private or domestic nature for 30 hours or less each week
- a non-Australian resident and you're paid to do work outside Australia
- an Australian resident paid by a non-resident employer for work done outside Australia
- a senior foreign executive on a certain class of visa
- temporarily working in Australia for an overseas employer and covered by the super provisions of a bilateral social security agreement.
Contractors
If you're paid as an individual under a contract that is wholly or principally for your labour and you're paid for hours worked rather than to achieve a result, you may be eligible for super guarantee contributions.
Self-employed
If you're a sole trader or a partner in a partnership, you don't have to make super contributions to a super fund for yourself. However, you might want to make super contributions anyway to save for your retirement.
Working overseas
If you temporarily work overseas for your employer, they must continue to pay super contributions for you in Australia. Your employer may be able to apply to the ATO for a Certificate of coverage so neither of you have to pay super in the other country.
Contractors
Your employer must make super guarantee contributions for you if you're paid under a contract that is wholly or principally for your labour (that is, physical labour, or mental or artistic effort), even if you've quoted an Australian business number.
A contract may be considered 'wholly or principally for labour' if:
- you're paid wholly or principally for your personal labour and skills
- you must perform the contract work personally
- you're paid for hours worked, rather than to achieve a result.
A contract for labour can be made either verbally or in writing.
For super to apply, the contract must be directly between you and your employer. It can't be through another person or through a company, trust or partnership.
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To work out if you're entitled to super:
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Self-employed
If you're self-employed - that is, a sole trader or a partner in a partnership - you don't have to make super contributions to a super fund for yourself. However, you may want to consider super as a way of saving for your retirement. If you're self-employed, you may:
- be able to claim a full tax deduction for your super contributions
- be eligible for the low income super contribution
- be eligible for the super co-contribution on contributions that you don't claim a deduction for
- benefit from the additional concessions for certain invalidity payments.
Your fund can only accept personal contributions from you if it has your tax file number.
How much your employer should pay
If you're eligible for super guarantee contributions, at least every three months your employer must pay into your super account a minimum of 9% of your ordinary time earnings, up to the maximum contribution base. These payments are classified as employer contributions so will count towards your concessional (before-tax) contributions cap.
All employers must use ordinary time earnings to work out their contributions for you. Ordinary time earnings are generally what you earn for ordinary hours of work, including over-award payments, commissions, allowances, bonuses and paid leave. It excludes things such as annual leave loading and reimbursement of expenses and will generally exclude overtime. For example, if your ordinary time earnings for the quarter are $20,000 your employer must pay $1,800 into your super account.
If you receive super contributions under an award, your employer's contributions must be enough to satisfy both the award and the super guarantee requirements.
If you're a contractor, the minimum super amount should be calculated on the labour component of your contract, if it's possible to separate it out. Otherwise it should be calculated on the total amount.
Maximum contribution base
The maximum contribution base limits the maximum amount of super support that your employer has to provide for you each quarter. It's indexed annually. Your employer doesn't have to pay super guarantee contributions for any earnings above this limit. The limit doesn't apply to other mandated contributions, such as contributions you receive under an award.
Checking that your employer is paying the correct super
If you think your employer isn't paying your super into the right fund, or isn't paying as much as they're supposed to, here's what you should do.
Step 1
Talk to your employer. You should ask them:
- how often they're currently paying your super
- into which fund they're paying it
- how much they're paying.
It's a good idea to ask these sorts of questions when you start work with an employer.
You should also make sure you're eligible for compulsory employer contributions.
Step 2
Check your most recent member statement from your super fund. This statement shows how much super your employer has contributed on your behalf in the previous financial year. You can also contact your super fund for more up-to-date information.
Step 3
If you've completed steps 1 and 2 and still believe your employer isn't paying enough or any super, or isn't paying your super to your chosen fund, you can lodge an enquiry with the ATO about unpaid super by:
- using the online Employee superannuation guarantee (SG) calculator
- phoning the ATO on 13 10 20.
Providing your tax file number (TFN)
When you start work, your employer will give you a Tax file number declaration form to complete. Your employer will use the completed form to pass on your TFN to the super fund they pay your super into. If you're eligible, your employer should start making super guarantee contributions into your fund from the period you start working.
It isn't compulsory for you to provide your TFN to your fund, but if you don't provide it:
- your fund is liable to pay extra income tax on contributions your employer makes for you (including salary sacrifice contributions) and may take this extra money out of your super account
- your fund must not accept any personal contributions and you will miss out on government contributions even if you're otherwise eligible
- it will be harder to keep track of your super.
You can check if your super fund has your TFN by looking at the statements they send you. If your statements show that your TFN is not held by your fund, you should contact them.
Extra tax
If you opened your super account before 1 July 2007 and have not provided your TFN to your fund, all employer contributions (including salary sacrifice contributions) are taxed an extra 31.5% once those contributions exceed $1,000 in an income year. This tax applies to the whole amount, including the first $1,000, and is in addition to the usual 15% contributions tax.
If you opened a super account after 1 July 2007 and have not provided your TFN to your fund, all employer contributions (including salary sacrifice contributions) made to that account will be taxed an extra 31.5% regardless of the contribution amounts.
Your fund will work out if it has to pay this extra tax at the end of each financial year.
Super contributions
If you don't give your super fund your TFN they will only be able to accept employer contributions for you. This means your fund will have to return other contributions, including any contributions:
However, the fund does not have to return a contribution to you if, within 30 days of it being made, you give your TFN to your fund.
If your fund has to return the contributions you make, they will be treated as if they had never been made and you will not be eligible for a super co-contribution.
Choosing a super fund
Most people can choose the super fund they want their employer contributions paid into, as long as it's a complying fund. A complying fund is an Australian super fund that receives concessional tax treatment because it's regulated under the relevant super legislation and hasn't been issued with a notice of non-compliance.
This page has information about:
Eligibility to choose a fund
You're generally eligible to choose a super fund for your super guarantee contributions if:
- your super is paid under a federal award or a former state award, now known as 'notional agreement preserving state award'
- you're employed under another award or agreement that doesn't require super support, or
- you're not employed under any award or industrial agreement (including contractors paid principally for their labour).
If you're eligible to choose a fund, your employer must give you a Standard choice form so you can make that choice in writing.
You may also be able to choose how your savings are invested. Some fund investment strategies offer higher returns with higher risks, while others offer greater security for your money but with lower returns.
You may wish to speak to an independent qualified super professional to decide your investment strategy.
When you can't choose your super fund
You're not eligible to choose the super fund you want your super guarantee contributions paid into if:
- your super is paid under a state award or industrial agreement
- your super is paid under certain workplace agreements, including some Australian workplace agreements (AWA)
- you're a federal or state public sector employee, excluded from super choice by law or regulations
- you're in a particular type of defined benefit fund or have already reached a certain level of benefit in that super fund.
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For more information, refer to Choosing a super fund.
For help comparing super funds, visit ASIC's consumer website - MoneySmart - at www.moneysmart.gov.au and use their super calculator.
If you're not sure what award or industrial agreement, if any, you're covered by:
- visit the Fair Work website at www.fairwork.gov.au
- phone the workplace relations department in your state or territory.
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Types of funds
There are five basic types of funds. However, funds decide who can join.
- Public sector funds: These funds are generally open to Commonwealth, state and territory government employees.
- Corporate funds: These funds are generally only open to people working for a particular employer or corporation.
- Industry funds: These funds are sometimes open to everyone. Otherwise, you can join if you work in a particular industry or under a particular industrial award and your employer signs up with the fund.
- Retail funds: These funds are open to everyone. They are run by financial institutions.
- Self-managed super funds (also called SMSFs): SMSFs work like any other super fund, but the responsibility of managing it rests solely with the trustee (you).
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For more information about comparing super funds, visit ASIC's consumer website - MoneySmart - at www.moneysmart.gov.au and use their super calculator.
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Self-managed super funds
If you set up a self-managed super fund (SMSF), the responsibility of managing it rests solely with the trustee (you).
Establishing and operating an SMSF is a major financial decision. After all, with this type of fund you're both a member and a trustee. This means you have control over and responsibility for your fund's investment decisions. You also have to manage the fund's legal responsibilities.
SMSFs receive tax concessions like any other super fund and certain contributions made to the fund are taxed at 15%, just like any other super fund.
There are a range of advisers and professionals who can help you. First, you should discuss your personal circumstances with a qualified professional.
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Be very wary of promoters who approach you to set up an SMSF with the purpose of withdrawing some or all of your super to pay for things other than your retirement. These arrangements are illegal, and you could incur severe penalties and loose your super.
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Working overseas
If you take up an Australian employer's offer to temporarily work for them overseas, your employer must continue to pay super contributions for you in Australia. Neither you nor your employer will have to pay super (or a super equivalent) in the other country if:
- that country has a bilateral social security agreement with Australia
- you remain covered in Australia by the super guarantee
- your employer obtains a Certificate of coverage from the ATO.
Your employer should provide you with a copy of the original Certificate of coverage before you leave Australia to work in the other country (you can then show the certificate to authorities in the other country). Australian employers can apply online for a Certificate of coverage.
Other contributions
You can contribute to your own super and you may be eligible for government contributions.
Concessional (before-tax) contributions
Concessional contributions are sometimes called 'before-tax contributions' because the contributor can usually claim an income tax deduction. They include:
- compulsory super guarantee contributions made by your employer
- salary sacrifice contributions
- any personal contributions you notify your fund you intend to claim as an income tax deduction.
Concessional contributions are taxed 15% in the super fund, but if you exceed your concessional contributions cap an extra tax of 31.5% applies to the excess.
Non-concessional (after-tax) contributions
Non-concessional contributions are generally the after-tax contributions you make to a super fund. They include personal contributions you make from your after-tax pay. They aren't usually taxed in the super fund, but if you exceed your non-concessional contributions cap a tax of 46.5% applies to the excess.
Personal contributions
You can boost your super by adding your own contributions to any contributions an employer may be making for you. Personal contributions are non-concessional or 'after-tax' contributions unless you have claimed a tax deduction for them. If you're an employee you generally can't claim a tax deduction for personal super contributions, though you may be eligible for a super co-contribution.
Government super contributions
You may be eligible for either the super co-contribution or the low income super contribution or both, which means the Australian Government also contributes to your super account.
Salary sacrificing super contributions
You can enter an agreement with your employer to have some of your salary or wages paid into your super fund instead of to you. This may have tax advantages for you because the standard 15% tax on super is probably less than the tax you would have paid if you had taken the money as salary.
Concessional (before-tax) contributions
Generally, a concessional contribution is a contribution that is made by or for you to a complying super fund and is assessable income of the fund (which means that the fund will pay tax on the contribution). If the contributor is able to claim an income tax deduction for the contribution, the contribution effectively comes from their 'before-tax' income.
Concessional contributions include:
- employer contributions such as
- compulsory super guarantee contributions
- any additional voluntary super contributions your employer may make
- any fund costs paid by your employer on behalf of your super fund, such as administration fees and insurance premiums
- the equivalent of your employer contributions under a defined benefit scheme as determined by the trustee
- salary sacrifice amounts
- personal contributions by an eligible person (such as a self-employed person) that are allowed as an income tax deduction
- transfers from reserves (as defined by the regulations to the legislation)
- the taxable component of a directed termination payment (or the total of directed termination payments plus any transitional eligible termination payments) in excess of $1 million.
Concessional contributions cap
The concessional contributions cap is the limit on the amount of concessional contributions you can make each year before you pay extra tax. For the 2012-13 year the concessional cap is $25,000 for everyone, regardless of age or super balance.
If you split your taxed super contributions with your spouse, the full amount of the original contribution counts towards your concessional contributions cap.
Any amount over the concessional contributions cap will be taxed at an additional 31.5%. You're personally liable for this tax, but you can use the release authority we give you to ask your super fund to release money up to the amount of this tax. The excess amount will also count towards your non-concessional contributions cap.
It's important to regularly monitor the contributions made to your super fund if you don't want to inadvertently exceed a cap.
Timing of your contributions can also be important. Contributions are counted towards the caps in the year in which they are received and credited by your super fund. For example, your employer may send contributions to the fund in the month after each quarter, which means that contributions for April-June will be received by the super fund in July and will therefore count towards the next financial year caps.
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For more information about concessional contributions:
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Non-concessional (after-tax) contributions
Non-concessional contributions are generally the 'after-tax' contributions you make to a super fund and are not included in the fund's assessable income. Non-concessional contributions include personal contributions you make to super from:
- your take-home (or after-tax) pay, or your savings, for which you aren't allowed a personal super deduction in your income tax return
- profits from your business or from selling an asset
- an inheritance you receive
- amounts you transferred from a foreign super fund that do not count towards your Australian fund's assessable income.
Other types of non-concessional contributions include:
- contributions made on your behalf by your spouse (unless they are doing so as your employer)
- if you're under 18, contributions made on your behalf by any other (non-employer) third party, such as a friend or relative
- contributions in excess of your concessional contributions cap for the year.
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If you make personal contributions that you don't claim as an income tax deduction, and you're a low-to-middle income earner, you may be eligible for the super co-contribution.
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Non-concessional contributions cap
The non-concessional contributions cap is the limit on the amount of non-concessional contributions you can make each year before you pay extra tax.
The non-concessional contributions cap is six times the amount of the concessional contributions cap, which is indexed each year. In 2012-13 the non-concessional contributions cap is $150,000.
If you are under 65 years old for at least one day of a financial year, you can 'bring forward' two years worth of contributions, giving you a total non-concessional contributions cap of $450,000 for the three years, rather than a $150,000 cap in each year of the three years. The three-year period automatically starts from the first year that you contribute more than that year's non-concessional contributions cap.
There are some contributions you can make that don't count towards your non-concessional contributions cap. These include:
- proceeds from the sale of a small business asset - but you must elect to count the amount towards your $1 million (indexed) lifetime super capital gains tax (CGT) cap before or when you make the contribution
- proceeds from personal injury due to permanent incapacity (subject to certain conditions) - but you must elect to exclude the amount before or when you make the contribution
- certain portions of a directed termination payment
- super co-contributions.
It's important to regularly monitor the contributions made to your super fund if you don't want to inadvertently exceed a cap.
Timing of your contributions is important. Contributions are counted towards the caps in the year in which they are received and credited by your super fund. This will usually be some time after a cheque is sent or handed to your super fund, or an online transfer is authorised. Any amount over the non-concessional cap will be taxed at 46.5%. You're personally liable for this tax, and you must use the release authority we give you to get your super fund to release the amount of the tax from your super.
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For more information about concessional contributions:
- refer to Super contributions - too much super can mean extra tax
- speak to your employer or super fund for information about the type and amount of contributions paid to your super fund
- seek professional advice before you make any decisions - these calculations can be complex and, depending on your circumstances, have many tax implications.
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Personal contributions
If you wish, you can put your own money into your super fund - this is called making a personal contribution. You may be able to:
- add to your super if you're not working
- claim a tax deduction for your contributions if, for example, you're self-employed (employees usually can't claim a deduction).
You may also be able to make contributions into your spouse's super fund.
Personal contributions generally come from your after-tax pay or business profits. Unless you're allowed an income tax deduction for them, they will count towards your non-concessional contributions cap.
The earlier you start contributing to super, the more you're likely to benefit when you retire. This is due to the compounding effect of super as a long-term investment and, in part, to super generally being managed in a low-tax environment.
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To find out how much you'll need for your retirement, how much you may get and how much you need to add to your super, you should consider seeing a licensed financial adviser.
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If you make personal contributions that you don't claim as an income tax deduction, and you're a low- to middle-income earner, you may be eligible for the super co-contribution.
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For more information about choosing a financial adviser or to use a super calculator, visit ASIC's consumer website - MoneySmart - at www.moneysmart.gov.au
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Adding to super if you're not working
You can make personal after-tax contributions to your super fund or retirement savings account if you're not working, provided you're under 65 years of age.
If you're 65 years of age or over, you can only make personal after-tax super contributions if you:
- aren't yet 75 years of age and
- have been gainfully employed for at least 40 hours over 30 consecutive days during the financial year.
Claiming a deduction for super contributions
Employees generally can't claim a tax deduction for personal super contributions.
You may be able to claim a full income tax deduction for personal contributions you make to your super until you turn 75 years of age if you're:
- self-employed - that is, a sole trader or a partner in a partnership
- not employed or earn less than 10% of your total income from employment.
If you wish to claim a tax deduction for personal contributions, you must complete and lodge a notice of intent, in the approved form, with your super fund and have this notice acknowledged (in writing) by your fund. You need to give your notice of intent to your fund before the earlier of:
- the day you lodge your income tax return for the year in which you made the contribution, or
- the end of the income year following the year in which you made the contribution.
However, if you claim a deduction for all of your personal contributions, you won't be eligible for a super co-contribution. If you choose to claim a deduction for a portion of your personal contributions, the remainder may be eligible for a super co-contribution if you meet the other super co-contribution eligibility requirements. Consider seeing a licensed financial planner to work out the best course for you.
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If you:
- claim a tax deduction for any super contributions you make, those contributions will be subject to 15% tax in the fund (that is, they become concessional in nature)
- contribute over the concessional or non-concessional contributions caps, you'll be liable for extra tax on those contributions.
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Spouse contributions
You can add to your spouse's super if your spouse is:
- under 65 years of age, or
- under 70 years of age and has been in paid work for at least 40 hours over 30 consecutive days during the financial year in which you want to make the contribution for your spouse.
In some circumstances you may be able to claim an income tax rebate for any spouse contributions you make.
Government super contributions
If you're a low-to-middle income earner, the government may help boost your super savings through the super co-contribution and the low income super contribution.
Super co-contribution
If you are eligible for a super co-contribution, the government will match your personal super contributions up to a maximum amount.
You don't need to apply for the super co-contribution. If you're eligible, all you need to do is make personal super contributions and lodge an income tax return. We work out:
Eligibility
We use the information on your income tax return and the contributions information we receive from your super fund or retirement savings account to work out whether you're eligible. If you are, we'll automatically calculate the co-contribution amount and deposit it into your super account.
You are eligible for a super co-contribution if:
- you made an eligible personal super contribution in the income year
- your total income (which includes reportable employer super contributions) was less than the higher income threshold for that year
- 10% or more of your total income was from eligible employment, running a business or a combination of both
- you were less than 71 years old at the end of the income year
- you did not hold an eligible temporary resident visa at any time during the year (unless you were a New Zealand citizen or the holder of a prescribed visa)
- you lodged your income tax return for the relevant income year.
Calculating your super co-contribution
Your maximum super co-contribution depends on your income. If your income is equal to or less than the lower income threshold ($31,920 for the 2011-12 income year) you can get a co-contribution of up to the full 'maximum entitlement'. For every dollar that you earn above the lower income threshold, your maximum entitlement is reduced by 3.333 cents. You cannot get a super co-contribution if your income is at or above the higher income threshold.
The amount of your super co-contribution depends on the amount of non-concessional (after-tax) contributions you put into super and the 'matching rate' for the financial year you made the contribution.
Year
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Matching rate
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Maximum
entitlement
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Lower income
threshold
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Higher income
threshold
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2011-12
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100%
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$1,000
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$31,920
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$61,920
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The government has announced that for the 2012-13 financial year the maximum super co-contribution will be $500, the matching rate will be 50% and the higher income threshold will be $46,920. These proposed changes are not law because they have not been passed by parliament. For more information, refer to Super co-contribution thresholds.
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You need to make your contribution by 30 June to get your super co-contribution at the current year's rates. Check with your fund to ensure they do not have any requirements that might prevent your contribution being received by 30 June.
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Low income super contribution
The low income super contribution (LISC) is a government payment to help low income earners save for their retirement.
From the 2012-13 income year, your LISC is 15% of the concessional (before tax) super contributions you or your employer make. The maximum payment you can receive for a financial year is $500 and the minimum is $20.
You are eligible for a LISC if:
- you have concessional contributions for the year made to a complying super fund
- your adjusted taxable income does not exceed $37,000 (if you are required to lodge a tax return)
- you are not a holder of a temporary resident visa (New Zealand citizens in Australia do not hold temporary resident visas and are therefore eligible for the payment)
- 10% or more of your total income is derived from business or employment
- the amount payable is $20 or more.
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If you do not lodge an income tax return, we will work out your eligibility using contributions information from your super fund along with other information we collect.
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We will pay a LISC directly to your complying super fund. Make sure your fund has your tax file number as it cannot accept a LISC on your behalf without it. It may take up to 14 months from the end of the financial year for the payment to reach your fund.
Your super fund will show the LISC on your member statement.
Salary sacrificing super contributions
Salary sacrifice contributions are when you and your employer make a valid agreement to pay some of your future before-tax (gross) salary or wages into your super.
If you want to make salary sacrifice contributions, talk to your employer about it first to make sure they allow it and you know what the benefits will be to you - for example:
- salary sacrifice reduces your assessable income
- super contributions are taxed in your super fund at 15%, which is usually less than you would pay if you took the money as salary (but remember caps apply to super contributions - any super contributed over a cap amount is subject to extra tax).
If you choose to salary sacrifice contributions, your employer is entitled to make super guarantee contributions based on your new reduced salary. The sacrificed contributions will count towards the employer's super guarantee obligation. If you want your employer to pay super on the original total salary, you should obtain their agreement in writing.
Salary sacrifice contributions count towards your concessional contributions cap.
Extra super contributions your employer makes for you under a salary sacrifice arrangement are reportable employer super contributions.
Keeping track of your super
Your super is your savings for retirement. It's important for you to have an accurate idea of how much is being contributed, where it's going, and what super accounts you have.
Checking your super contributions
If you're entitled to compulsory super guarantee contributions from your employer, make sure you know how much they pay and what fund it's being paid into.
Transferring your super to one account
If you have more than one super account, you may want to consider combining them into one super fund so you pay only one set of fees and costs. It also means you can keep track of your money more easily. You should find out if your fund will charge you to close the account and whether you'll lose any benefits.
Finding any lost or unclaimed super
If you've ever changed your name, address or job, you may have some lost super and be listed on our lost members register.
Unclaimed super is different to lost super. It's money that can be withdrawn from a super fund because you meet eligibility requirements, but the super fund can't contact you. You may be listed on our unclaimed super money register.
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You can search for your lost and unclaimed super online with SuperSeeker.
We update the information on SuperSeeker regularly, so you can keep checking for any new accounts that we might find on your behalf.
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Checking your super contributions
It's important for you to know how much super is being contributed by your employer on your behalf. When you start a new job, ask your employer how much super they will be paying, if you didn't choose a super fund then where it will be paid to, and how often it will be paid.
Your employer must pay your super guarantee contributions at least every three months; however, they may choose to pay more often.
If your employer is also making super contributions on your behalf from your after-tax pay, these contributions must be paid more regularly. Your employer must pay each contribution into your super fund within 28 days of the end of the month in which they take it from your pay.
Your employer may also have to report the super contributions they make on your payslips because of the award or agreement you work under or government regulations. Regardless of how often your employer pays your super or if they have to report their super contributions to you, the statement you receive from your super fund will show how much super your employer has paid for the previous financial year.
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If you think your employer hasn't been paying their super guarantee contributions correctly, speak to your employer and check with your fund to find out how much has been paid. If you still believe your employer is not paying enough (or any) super, you can lodge an enquiry with us regarding your super guarantee contributions. For more information, refer to Unpaid super.
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Transferring your super to one account
If you have more than one super account, you may want to consider combining them into one super fund so you pay only one set of fees and costs. It also means you can keep track of your money more easily.
Our online SuperSeeker tool can help you search for your super and consolidate your accounts. If you have more than one account and wish to consolidate them, you can use the online form in SuperSeeker to make such a request.
Before making a decision to transfer your super, we recommend you:
- ask your super fund if there are any fees or charges for, or benefits affected by, rolling your money over to another fund
- speak with a qualified financial adviser.
You can transfer or roll over your super at any time, with some limited exceptions. Your old super fund has 30 days to make the transfer. The 30-day period starts once you've provided the fund with all the information it needs.
Your old super fund will send you a rollover benefits statement. Check that it's correct and keep it for your records.
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Search for your lost and unclaimed super online with SuperSeeker.
We update the information on SuperSeeker regularly, so you can keep checking for any new accounts that we might find on your behalf.
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Rollover benefits statement
When you ask your super fund to transfer your super to another fund, the fund making the rollover completes a rollover benefits statement. They give the statement to the fund that has received your rollover benefit (the receiving fund) and a copy of the statement to you. They must send you the copy within 30 days of paying the rollover benefit to the receiving fund.
The receiving fund uses the information in the statement to allocate rolled over amounts correctly to your super account and to report to us any current year contributions rolled over.
When you receive the rollover benefits statement, check that the information in it is correct (if not, contact the fund that made the rollover) and keep it for your records. You don't need to do anything else.
You don't need to send a copy of the statement to us.
If you want to check that your benefit has been rolled over, you'll need to contact the receiving fund.
Finding any lost or ATO-held super
If you've ever changed your name, address or job, you may have some lost super and be listed on our lost members register. We may also be holding, on your behalf, amounts paid to us by employers, super funds or the government.
To find out if you have any lost or ATO-held super, use our free online search tool SuperSeeker.
Using SuperSeeker
If SuperSeeker finds a match in our registers it will display details of the relevant accounts.
Super listed as lost is held by the super funds. If you find lost super you may wish to consider:
- contacting the fund to update your personal details or enquire about your lost account
- consolidating your accounts, which may reduce your fees and costs
- withdrawing your benefit, if your account balance is less than $200 and certain criteria are met.
SuperSeeker allows you to check your current super accounts, find lost super or any super we are holding for you, and use the online transfer form.
To access these services, the first thing you need to do is register online with us. This is an important security measure, given the personal information we display. It also helps to ensure that any transactions made are being made by you.
Once you create a secure login you can use it to access SuperSeeker anytime.
We need information from some personal documents to know who you are. Your notice of assessment (NOA) from us is a good place to start. Check the details that appear on your notice of assessment and make sure you use the same details when creating your secure login. For example, if you have changed your name since your last NOA was issued, you will need to use your old name for us to confirm your identity. More information about the types of personal documents you can use to create your secure login is available on the SuperSeeker website. Once you create a secure login, you can visit SuperSeeker any time to check your super accounts.
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To find out if you have any lost or ATO-held super you can do a quick search. You will need to provide your name, date of birth and tax file number.
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Provide your fund with your TFN.
If you give your fund your TFN, it's much easier to keep track of your super. You can check whether your fund has your TFN by looking at your member statement. If your TFN is not listed on your statement, contact your fund.
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Lost members register
If you've ever changed your name, address or job, you may have some lost super.
We keep a list of the names of people who have been reported by their funds as lost. This list is called the lost members register (LMR).
If you think you've lost track of some of your super, you may be listed on our LMR.
You may also be listed on our LMR if:
- your fund has been unable to contact you because they don't have your address or the mail they sent to you has been returned
- your fund has not received contributions or a rollover for you in the past five years
- your account was transferred to another fund as a lost member.
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You can search for your lost super:
- online using the SuperSeeker tool
- over the phone by calling 13 28 65 and following the prompts
- by downloading and completing a Searching for lost super form (NAT 2476, PDF 99KB).
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ATO-held super
ATO-held super includes amounts paid to us by employers, super funds or the government on your behalf. If we have been unable to find an account to transfer the money to, we hold it on your behalf.
ATO-held super includes:
- super guarantee
- super holding accounts (SHA) special account
- super co-contributions
- unclaimed super.
Super listed as ATO-held super may have been transferred to us by the super fund. If you find ATO-held super you can follow the links to nominate a fund where you would like your money to go to using the online transfer form in SuperSeeker. Alternatively, you can contact us directly.
Accounts which haven't received contributions in the last 12 months
A super account which has not received contributions in the last 12 months does not currently need to be reported to us and may not be displayed in SuperSeeker. However, legislation requiring super funds to report such accounts to us has been passed. You can see these accounts in SuperSeeker from January 2014. You can decide then if you would like to transfer this money to another super account online using SuperSeeker.
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You can search for your ATO-held super:
- online using SuperSeeker
- over the phone by calling 13 28 65 and following the prompts.
For more information, refer to ATO-held super.
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Accessing your super benefits
When you can access your super
You can access your super when you reach your preservation age and retire, or you turn 65 (even if you haven't retired).The preservation age will increase from 55 to 60 between 2015 and 2025. You may also be able to access your super under the transition to retirement rules.
Accessing your super before retirement
There are very limited circumstances where you can access your super savings early. These circumstances are mainly related to specific medical conditions or severe financial hardship.
Temporary residents
If you're a former temporary resident who has left Australia, you can apply to have your Australian super paid out to you. This is called a Departing Australia super payment.
How tax applies to super and death benefits
How tax applies to your super benefits depends on a number of things, such as your age and whether your super comes from a taxed or untaxed source. The tax treatment of both super and death benefits is also affected by whether the benefits are paid as a lump sum or income stream (regular payments).
Pensions and other benefits
If your super benefits won't fully support you when you retire, you may qualify for government support, such as age and service pensions or benefits. You may also be eligible to claim certain tax offsets.
When you can access your super
You can access your super:
There are also limited circumstances in which you may be able to access your super before you retire. Ask your super fund about these circumstances. The super fund will advise you if your funds may be accessed.
Under the super laws you don't have to cash out your super just because you've reached a certain age, but the rules of your particular super fund may specify otherwise.
Your preservation age
Your preservation age is not the same as your pension age. Your preservation age is the age you must reach before you can access your super and depends on when you were born.
The following table will help you work it out.
Date of birth
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Preservation age
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Before 1 July 1960
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55
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1 July 1960 - 30 June 1961
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56
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1 July 1961 - 30 June 1962
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57
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1 July 1962 - 30 June 1963
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58
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1 July 1963 - 30 June 1964
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59
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From 1 July 1964
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60
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Your pension age is used to determine eligibility for certain government benefits, including the age pension. The pension age is currently 65 for men and 60 for women born before 1 July 1935, gradually rising to 65 for women born after 1 January 1949. Pension age is five years earlier for veterans.
Transition to retirement
Under the transition to retirement rules, you can withdraw some of your super as regular payments from your super savings to supplement other income you receive. There's a limit on how much can be drawn down each year.
You can't take a lump sum payment under transition to retirement.
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Marriage breakdown and super
If your marriage breaks down, your super is treated like any other asset of the marriage and can be divided by agreement or court order. However, there may be tax consequences from dividing your super. For more information, speak to a licensed financial adviser.
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Accessing your super before retirement
Accessing your super before you retire is only allowed in very limited circumstances, such as:
- severe financial hardship
- certain compassionate grounds
- a terminal medical condition
- permanent or temporary incapacity.
If you legitimately need some of your preserved super earlier, ask your super fund about whether you may be able to access it before applying.
Keep in mind that your super fund's deed will determine whether or not your fund's trustee can release your super benefits.
Applications for release of benefits on compassionate grounds must be referred to the Department of Human Services (DHS).
If you've reached your preservation age but aren't yet 65, you may also take your super benefits before you retire, but in the form of any of the following
- a transition to retirement income stream
- a non-commutable allocated pension or allocated annuity
- a non-commutable pension or annuity.
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For information about releasing super early under severe financial hardship, on compassionate grounds, permanent or temporary incapacity or due to a terminal medical condition, contact your super fund first.
You can also refer to Conditions of release to access your super before retirement (including natural disasters).
For more information about DHS and early-release applications:
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Beware of promoters offering various plans to gain early access to your super savings before you retire. The promoters of these plans will tell you that they can help you access your super savings for reasons such as paying off debts, buying a house or car, or even going on holiday. These schemes are illegal and heavy penalties apply if you participate. For more information, refer to Illegal super schemes - beware of offers to withdraw your super early.
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Temporary residents
If you're a temporary resident working in Australia, your employer has to make super guarantee contributions for you if you're eligible. You may be paid your super money once you have left Australia. This is called a departing Australia super payment (DASP).
You can apply for a DASP if all of the following apply:
- you visited on a temporary visa (excluding visa subclasses 405 and 410)
- your visa ceased to be in effect
- you have left Australia.
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This payment is not available to Australian or New Zealand citizens, or permanent residents. If you claim your super payment, you may still be able to return to Australia on another visa.
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How tax applies to super and death benefits
Super benefits
Super benefits you receive are tax free if you receive them from a taxed source and you're 60 years old or over. This means when you receive a super lump sum, or payments from a super income stream, you get them in your hand tax free.
If you're under age 60 when you receive your super benefits, the taxable component is assessable income.
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Super income streams can give you regular income payments throughout your retirement.
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If your fund pays tax for you
Most people are in a taxed super fund, which means their fund pays tax on super contributions they receive and earnings such as interest from investments. If you're under age 60 when you receive a super income stream, the taxed element is assessable income and taxed at your marginal rate, plus Medicare levy. However, you may be eligible for a 15% tax offset.
If your fund doesn't pay tax for you
If your fund is an untaxed super fund, your benefits have not been taxed in the fund. The taxable component of a super income stream from an untaxed fund is assessable income and taxed at your marginal rates plus Medicare levy, regardless of your age. If you're 60 years old or over when you receive a super income stream payment, the untaxed element is eligible for a 10% tax offset.
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For more information, refer to:
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Super lump sum death benefits
This type of benefit is tax free if it is paid to a person who is a dependant. This can be paid as an income stream or a lump sum.
Maximum tax rate for lump sums paid to non-dependants
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Taxed element of the benefit
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15% plus Medicare levy
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Untaxed element of the benefit
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30% plus Medicare levy
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A variation to this calculation may occur in certain circumstances.
Death benefit income streams
The way tax applies to a death benefit paid as an income stream depends on several factors, such as:
- the age of the person receiving the benefit
- the age at which the deceased died
- whether the recipient is a dependant, including a child who is permanently disabled.
Pensions and other benefits
If your super benefits won't fully support you when you retire, you may also qualify for:
- government support, such as age and service pensions or benefits
- tax offsets.
If you're retired or have turned 60, you may be eligible for some tax offsets. This will depend on your income and assets, where your income comes from, and whether you're fully or partly retired.
You may be able to claim the:
- senior Australian tax offset (only available if you're 65 years and over)
- mature age worker tax offset
- low income tax offset.
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For more information about government age pensions, concessions and other benefits:
- phone Centrelink on 13 23 00
- visit your nearest Centrelink customer service centre
- visit the Centrelink website at www.centrelink.gov.au
For more information about service pensions and benefits:
- phone the Department of Veterans' Affairs on 13 32 54
- visit your nearest Veterans' Affairs network office
- go to www.dva.gov.au
For more information about tax offsets, refer to About tax offsets.
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Last Modified: Tuesday, 29 January 2013
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