Get help on how to use BT Online Employer.
Sign in to BT Online Employer.
Call for more information on
1300 553 010
Super as an incentive
People work for profit and pleasure. Superannuation is a tool that can sharpen the attraction of the profit or financial focus. A good super scheme is an incentive for attracting and retaining staff.
But will it be enough?
If you're a man, you will probably need to have accumulated about $597,000 in super in order to retire at 65 with an income of $50,000 a year for life*.
Women will need around $697,000 invested because they tend to live longer. Men live an average 16 years after retirement at 65 and women 20 years*.
Once the importance of superannuation becomes apparent through these scenarios, both business and staff can take steps to maximise and to structure the benefits available.
Growing awareness of the importance of super
Increased media coverage has contributed to a greater awareness of investing. In a Challenger/ASSIRT Investment Sentiment Index, superannuation is now only second in popularity to home ownership.
The Superannuation Guarantee (SG)
Employers are required to pay a minimum charge or make minimum superannuation contributions for most employees. Some casuals or other staff earning less than $450 a month are exempted.
Originally set at three per cent when introduced by the Government in 1992, the minimum statutory requirement for the 2003/2004 financial year is nine per cent of the employee's earnings base.
The surcharge tax for high income earners
The superannuation surcharge may apply to contributions and can be up to 15 per cent. The surcharge generally applies when the sum of your total income, reportable fringe benefits and surchargeable contributions exceeds $94,691 (2003/2004). The surcharge may also be applied if you do not supply your Tax File Number.
The need for professional advice has never been stronger
The growing interest in investing generally has also generated interest in the role of making super work effectively. Because of the ever-changing nature of superannuation and investments, it's no wonder that an increasing number of people are seeking professional advice rather than trying to keep up-to-date and doing it all themselves. Why not email or call Westpac for help now?
General advice on this website has been prepared without taking into account your objectives, financial situation or needs. Before acting on the advice, consider its appropriateness. Consider our disclosure documents, which include Product Disclosure Statements (PDS) for some products. The PDS is relevant when deciding whether to acquire or hold a product. View our ABN & RSE Numbers for Superannuation entities.
By accessing and viewing this website you agree to be bound by the Terms and Conditions of this website.
* These scenarios assume a retirement age of 65, investment in an allocated pension fund, an investment earnings rate of 7 per cent, an indexation rate of 3 per cent and no lump sum tax. Other investments and social security benefits are excluded from consideration.
Copyright © 2009 Westpac Banking Corporation ABN 33 007 457 141