Superannuation & the Superannuation Guarantee
What is Superannuation and the Superannuation Guarantee?

Superannuation is part of the government’s plan to ensure an adequate income for Australians when they retire by encouraging them to save for their retirement.  It is easier to think of superannuation as a tax efficient wrapper that surrounds a number of investments such as managed funds, shares, cash, property, bonds etc.

Superannuation is a savings arrangement whereby employers, self-employed people and employees can contribute towards retirement. The superannuation fund holds these savings within a trust for members and the funds are invested. The superannuation fund can then be used at retirement to provide an income. The fund can also provide an income or lump sum in the event of a member suffering a serious disability or death.

The Superannuation Guarantee

The superannuation guarantee is the responsibility of employers not employees – you are not obliged to pay or do anything unless you employ someone.

The aim of the superannuation guarantee is to ensure as many Australians as possible enjoy the benefits of superannuation income in their retirement.

For the 2002–03 financial year and beyond, if you are an eligible employee, your employer should contribute a minimum of 9% of your earnings to a complying superannuation fund or a retirement savings account at least once every 3 months.


Most employees are also eligible to choose the superannuation fund for any superannuation guarantee contributions their employer makes for them.

Contact us to find the most suitable fund for your circumstances, don’t just settle for 2nd best.

In nearly all circumstances we are able to find lower cost or better performing funds that are more suitable to your circumstances than your employer default option