What Superannuation Means in Australia

Superannuation is a scheme to help you fund your retirement. Monies invested can’t be accessed until you satisfy a condition of release such as when you retire. Some of the Australian superannuation rules are covered here:

• Super Government Co-Contribution Scheme. To qualify for this government freebie:

  
  
  
  

  • Your assessable income must be less than $31,920, for a maximum benefit of $1,000 for 2011-12 financial year.

    
    
  
  

  • If your assessable income is more than $61,920, you can’t qualify.

    
    
  
  
  
  



• Concessional contributions are tax deductible:

  
  
  
  

  • If you’re under 50 years, you can contribute a maximum of $25,000 a year.

    
    
  
  

  • If you’re over 50 years, you can contribute a maximum $50,000 a year.

    
    
  
  
  
  



• Non-concessional contributions don’t qualify for a tax deduction:

  
  
  
  

  • If you’re under 65 years, you can contribute a maximum of $150,000 a year or $450,000 over three years.

    
    
  
  

  • If you’re 65–74 years, you can contribute a maximum of $150,000 and you must satisfy an employment test.

    
    
  
  
  
  



• Pensions from most super funds are taxed as follows:

  
  
  
  

  • If you’re 55–59 years and receive a superannuation pension, your pension is taxed at your marginal rates plus the Medicare levy, minus 15 per cent tax offset

    
    
  
  

  • If you’re 60 years and above and receive a superannuation pension, your pension is tax free.

    
    
  
  
  
  

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Source:http://www.dummies.com/how-to/content/what-superannuation-means-in-australia.html