Superannuation is a kind of retirement program which is easily available in Australia and is compulsory for all companies too. The employers of all companies pay an additional pay to the employee’s superannuation fund which is being forced by the law of the government. Normally the superannuation fund will set at 9% of the total employee’s salary and this fund can only be used by the employees when they will satisfy one of the conditions being released by the Superannuation industry regulation act of 1994. Superannuation law is compulsory for all Australian in Redcliffe. But there are some exceptions too for those persons who earn less than $400 in a month and for that whose age is in below 18 and above 70. Superannuation is a kind of investment which is normally meant for the retirement in nay person’s life and early access to this investment is being prohibited by the law. But in the case of rare circumstances these funds can be used. There are six various types of Redcliffe superannuation funds such as –
€ Most of the industry as well as company funds are being run by employers’ associations as well as unions too and do not require shareholders for that.
€ There are some wholesale master trusts which are being run by financial institutions for most of the groups of employees.
€ There are some kinds of employers standalone trusts which are almost established by the employees of the company for the benefits of their employees.
€ All of the above funds have unique features present in them which are not to be shared among with each other employers.
€ Retail master trusts are being established for individuals and are being run by some different financial institutions.
€ There are some kinds of funds meant for a small group of individuals called self-managed superannuation funds and is also being run by the Australian Taxation office.
€ All the trustees of the above funds are actual are the founder embers of these funds.
€ There are some funds which are developed for small group of people called Small Apra funds. These funds are just opposite to the self-managed funds because the trustee is being an appointed person and not a member.
€ There are some public sector employee funds also which are being meant for the employees but are being set by the government and not the employer of the company.
Going for superannuation is not at all a bad choice and as the amount in this fund is tax free or has less tax then it is highly recommended to employee as well as employers to invest the maximum upper limit in this fund scheme. The benefits of this scheme are unlimited and one can get the amount after being retired which is quite helpful for him in old age. People often talk about the advantages of this scheme and this is the leading advantage of the superannuation scheme. In addition to this the amount invested in this scheme has a lesser rate of tax on it. This tax is not same in all the countries but one thing that is sure is that it is always lesser than the general tax on the income that every citizen has to pay.