Payments into super
Payments into your super fund can include:
- contributions made by your employer (like Superannuation Guarantee payments)
- any Government co-contributions
- investment earnings on your super account balance.
Contributions splitting
TWUSUPER offers contributions splitting for members and their spouse. ‘Contributions splitting’ allows TWUSUPER members to 'split' or 'transfer' certain contributions to their spouse’s superannuation account.
This can be of particular benefit to a spouse who doesn’t work or is on a low income, who can use contributions splitting to boost their own super account. It is also great way for many couples to share and optimise their retirement nest egg.
Superannuation Guarantee (SG) contributions
The SG legislation requires employers to pay a minimum level of super for each eligible employee. The minimum level is currently 9% of each eligible employee's ordinary time earnings. However, if employees are covered by an Award or industrial agreement that specifies a higher amount, then the employer is obliged to pay the higher amount. There are some exceptions to the payment of SG contributions, including:
- employees who are under 18 and working less than 30 hours a week
- employees aged 70 or over
- employees who earn less than $450 in any calendar month
- a non-resident employee paid to do work outside Australia
- those temporarily working in Australia for an overseas employer who are covered by a bilateral social security agreement.
Voluntary contributions
Amounts you pay towards your super can help boost your retirement savings. Regular contributions, even fairly small amounts, can make a big difference to how much you save. You can generally make personal contributions through your regular pay (before tax or after tax), through a bank direct debit facility, or as one-off lump sum payments.
Go to fact sheets to download a contribution fact sheet
Spouse contributions
Making super contributions on behalf of your spouse can be a tax-effective saving tool for you and your family. For example, provided you and your spouse meet the eligibility requirements, you may qualify for a tax offset of up to $540 a year on the spouse contributions you make. You may also both be able to access the tax-free thresholds on your super benefit payouts if you are both aged under 60 years.
Co-contributions
The Government’s co-contribution scheme is designed to boost the super savings of low and middle-income earners. If you make after-tax contributions to your super and your income is under $61,920 a year (for the 2010/2011 financial year), you may qualify for a co-contribution of up to $1,000.
Go to fact sheets to download a Co-contribution fact sheet
Investment earnings
The money in your super account is invested and is credited with interest from investment earnings. (If investment earnings are negative, this could mean a debit to your account.) Most super funds now offer a range of investment options for members to choose from.