Guest Edinburger Posted October 10, 2007 Share Posted October 10, 2007 Hi folks, I have a question about Superannuation that is probably asked by every single person at this stage (those of us that are a bit slow anyway ). I've been offered $70k a year with a 9% SGC of $6,300 paid by the company, giving a total package of $76,300. It then says that my salary for Supeannuation purposes is $70k and that 'Employer will contribute 9% of base salary to an approved superannuation fund of your choice…blah blah'. So I'm a little confused. Do I have to pay something additional to the $6,300 that the company covers? Or are additional contributions just voluntary re a normal pension? Basically what I want to know is will my monthly take home be $70k-tax/12 or do I have to accoutn for a furhter deduction? Any help you guys a give before I have to go and ask my new HR dept would be greatly appreciated Cheers. Link to comment Share on other sites More sharing options...
Guest Edinburger Posted October 10, 2007 Share Posted October 10, 2007 It would seem that upon actually reading the whole document, I don't have to make any other contributions and it states that quite clearly Errrrr...sorry! Quite exciting all this. Link to comment Share on other sites More sharing options...
Guest Liam Posted October 11, 2007 Share Posted October 11, 2007 Hi mate Your 9% super (called the SGC or Super Guarantee Contribution) is paid by the company on top of your $70K. You do not have to add anything extra if you don't wish to. So your take home on $70K would be $53440 or about $1028 per week. CareerOne (take home pay calcuator) Here is some general information on the additonal contributions you can make: You have options of Salary Sacrificing to super (reduces tax on those earnings to 15%) After tax contributions to Super (0% tax as already paid the income tax) After Tax Spouse Contributions of $3000 (only really worth it if spouse earning less than $10K) for which you get a $540 tax rebate. Hope this is of help. Liam Link to comment Share on other sites More sharing options...
Guest Edinburger Posted October 12, 2007 Share Posted October 12, 2007 That's great, thanks for the info. I also qualify for the LAFHA which I believe means that what I pay in rent is deducted tax free from my salary, so that should help out a bit too. Link to comment Share on other sites More sharing options...
Guest BullcreekBob Posted October 22, 2007 Share Posted October 22, 2007 That's great, thanks for the info. I also qualify for the LAFHA which I believe means that what I pay in rent is deducted tax free from my salary, so that should help out a bit too. G'day There is no such thing as qualifying for LAFHA. Some employers choose to pay a LAFHA, some don't. Some employees negotiate one as part of their contract, some don't. You'll end up mightily unimpressed if you think "you qualify" for something that you've not negotiated for. I think you should check what you've agreed to. Bob in Bull Creek Link to comment Share on other sites More sharing options...
Liz B Posted October 23, 2007 Share Posted October 23, 2007 If someone changes jobs several times, what does the employee do about the super payments and does it all go to the same super funds? Just want to be sure as hubby had a job with a super a few years ago and since being back he has had a few different jobs with these payments being made and we obviously don't want to make silly mistakes. Liz Link to comment Share on other sites More sharing options...
Guest Edinburger Posted October 23, 2007 Share Posted October 23, 2007 G'day There is no such thing as qualifying for LAFHA. Some employers choose to pay a LAFHA, some don't. Some employees negotiate one as part of their contract, some don't. You'll end up mightily unimpressed if you think "you qualify" for something that you've not negotiated for. I think you should check what you've agreed to. Bob in Bull Creek Ah I see! I thought everybody got it as standard. Luckily it is a part of my contract so shouldn't be a problem. Seems almost impossible to work out how much it's worth to you until you get there though. Ah well. Link to comment Share on other sites More sharing options...
Guest dwaldron Posted October 23, 2007 Share Posted October 23, 2007 If someone changes jobs several times, what does the employee do about the super payments and does it all go to the same super funds? Just want to be sure as hubby had a job with a super a few years ago and since being back he has had a few different jobs with these payments being made and we obviously don't want to make silly mistakes. Liz Depending on the size of the employer you can nominate the super fund that your employer pays into. I would think that there is a requirement as to how often the monies are paid in to the fund, mine seems to go in every 3-4 weeks. I am stuck with my employer's choice of fund (Bankers Trust/BT) but I am able to choose where it goes (shares etc). When you leave a job you transfer (called 'rollover') your fund to wherever you want (but it's not compulsory to do so usually). Essentially it operates the same way as a UK stakeholder pension. Link to comment Share on other sites More sharing options...
Guest Liam Posted October 23, 2007 Share Posted October 23, 2007 Unless your husband works for a Government Department he has a choice of where his super is paid. I set most of my clients up with a retail super fund account that any employer can contribute too or they themselves can contribute to if they contract or are self employed. If your husband has had a number of jobs then he needs to check the industry super lost members accounts at AUSfund and the government site also SuperSeeker Employers have to pay Super Quarterly at a minimum and the payment has to be made within 28 days of the end of the quarter or the ATO will penalise them. Hope this helps Liam Link to comment Share on other sites More sharing options...
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