What is superannuation paid on?

8th Dec 2009 by Gary

Superannuation is nothing more or less than a pensin plan offered by a company. Normally any funds an employee puts into the plan will grow without being taxed until the time they start drawing on it.

Included in the pension plan would be funds put into the fund by the employer (defined benefit plan), or a defined contribution plan, which would be where employees contributed to the paln. Either way, it is called superannuation.

This answer is the subjective opinion of the writer and not of FinancialAdvisory.com

12th Nov 2009 by Tobias John Sterling

During a person's working life, money is paid into their chosen superannuation fund account on their behalf by their employer(s). This payment is a percentage of the person's salary or wages. Currently the percentage is set (by law) at 9%. In addition, people can choose to 'salary sacrifice', which means voluntarily contributing more of their pre-tax earnings to their superannuation. A person's superannuation is of course also affected by whatever investment gains (or losses) are made by the fund their account is with.

This answer is the subjective opinion of the writer and not of FinancialAdvisory.com