Superannuation Articles

Basic Considerations for a Member Voluntarily Commuting an Income Stream Income stream commutation rules are outlined in the SIS Regulations. A member of a superannuation fund may elect to commence an income stream (most commonly, an account based pension) once a...

What is Total Superannuation Balance? Total superannuation balance is the method used to value an individual’s total superannuation interests for taxation purposes. Superannuation interests refers to a member’s interests in superannuation.   Total superannuation...

What is the transfer balance cap? The transfer balance cap imposes a limit on the amount of capital that can be held in retirement phase in order to support a retirement phase superannuation income stream (also commonly referred to as a superannuation pension). The...

When a superannuation fund member satisfies a condition of release such as retirement, they may start to make withdrawals by lump sum/s, income stream, or a combination of the two.   In this article, we focus on the topic of withdrawal by income stream and the...

A superannuation death benefit is a payment from a super fund to a person or to a trustee of a deceased estate after the member has died. The tax treatment of a super death benefit is based on: whether the recipient of the death benefit is a death benefits dependant...

The First Home Super Saver Scheme (FHSS Scheme) was launched to help individuals save for their first home by allowing them to build up superannuation savings to use as a deposit. From 1 July 2022, individuals saving for their first home can contribute up to $50,000...

What is ordinary time earnings?OTE is the amount paid to employees for their ordinary hours of work. OTE includes payments such as commissions and shift loadings. Employers use: Ordinary time earnings (OTE) to work out the minimum super guarantee contribution for...

Types of super contributionsEmployers are required to pay super guarantee (SG) contributions for their employees. For the 2023-24 financial year, employers are required to contribute 11% of their employees’ ordinary time earnings into super. For the 2024-25 financial...

What is a Departing Australia Superannuation Payment (DASP)?Special taxation arrangements exist in Australia for superannuation benefits paid to former temporary residents after they have left the country. These benefits are referred to as "departing Australia...

The superannuation guarantee charge (SGC) is applied where an employer fails to meet super guarantee obligations either by paying employee superannuation entitlements late or not at all. Who is an employee for SGC purposes? An ‘employee’ as that term is defined in...

For many individuals, their superannuation is their largest source of savings. So when can you access your super? The key tenet of the entire superannuation system is to provide individuals with financial resources, sometimes in conjunction with the age pension,...

Super lump sums A super lump sum payment includes a: lump sum member benefit paid to an individual where a condition of release has been satisfied – for example, retirement, terminal medical condition, severe financial hardship, compassionate grounds lump sum death...