About your super
Even if you don't take an active interest in managing your super, it's in your interest to understand some basics to help your super to grow. You also should know how to protect your money for the future.
There are a few things you can do now to get your super organised to make the most it when you're retired.
You may be interested to know:
- super benefits are tax-free if paid from a taxed source and you are aged 60 or over
- you can keep your savings in super indefinitely – there are no compulsory cashing-out rules
- if you choose to take an income stream (or pension) from your fund, you must withdraw a minimum amount each year based on your age and your account balance
- employment termination payments cannot be rolled over into super
- transition to retirement income stream payments in a year cannot be more than ten per cent of your super account balance (at the beginning of the financial year)
- unless you have unrestricted non-preserved benefits in the account you cannot take a lump sum payment in transition to retirement
- from 1 January 2017 changes to the government pension asset test free area and the assets taper rate will mean that anyone receiving or applying for an allowance will have a higher assets threshold – therefore more people will qualify for an allowance
- since 1 July 2013, employers have been required to pay a super guarantee to eligible employees aged 70 or over
- the rate of super guarantee is 9.5% until June 2021 then will increase steadily each year to 12% by 2025–26
- if your super fund doesn't have your tax file number (TFN), you will be charged a higher tax on contributions and your fund may not accept some types of contributions.
From time to time, the government amends the super rules. These reforms may affect you and your super.