Tag: superannuation

It is a common misconception that superannuation interests automatically form part of your estate upon your death. This is not necessarily the case. Ultimately, the superannuation fund’s trustee determines where a superannuation death benefit is paid. Depending on the superannuation fund, it may be possible to fetter the trustee’s discretion with a binding death benefit nomination.

This month’s wealth pipeline was intended to continue our discussion on mitigating sequencing risk.  However, due to the recent mid-year budget announcement by the Government, our discussion on mitigating sequencing risk will resume next month.  This wealth pipeline focuses on the superannuation aspects of the mid-year budget.

This month we discuss the circumstances under which inactive and lost super accounts can be transferred to the Australian Tax Office (ATO).  

SuperStream is a government reform aimed at improving the efficiency of the superannuation system.  Under SuperStream, employers must make super contributions on behalf of their employees by submitting data and payments electronically in accordance with the ‘SuperStream standard’.  All superannuation funds, including SMSFs, must receive contributions electronically in accordance with this standard.  The purpose of this is to provide a consistent and more efficient process for receiving contributions, improve data quality, and simplify employer obligations.

The Superannuation Guarantee (SG) legislation requires employers to pay a minimum of 9% of its employees' ordinary time earnings as super (up to $45,750 per quarter) which in turn can be claimed as a tax deduction.  SG contributions must be paid for employees who are at work or on leave, such as paid sick leave, long service leave, annual leave and workers’ compensation (in some circumstances).  Under the legislation, SG contributions do not need to be paid for employees who are: