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Superannuation funds in Australia - a brief explanation


Gee

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Hi all,

As a soon to be Australian, I've heard many friends and colleagues talk about Superannuation funds that operate in Australia but never thought of asking, in simple terms, what they are, how they operate/are goverened/managed and how and if they differ from the Pension/Provident funds in South Africa?

I suppose I could research this on the web but wondered if someone on this forum can give a quick synopsis of these funds

tx

cheers

Gavin

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Short and sweet. All employers are obliged to pay a minimum of 9% of your gross income into a superannuation fund of your choice. You cannot touch this money until retirement. If you change employers you can stay with the same fund. You are allowed to contribute of your own funds to the fund as well, many people do this, as it has tax advantages for you.

I think it better to place your contributions into a pure super fund and not into one affiliated to an insurance company or bank. The admin fees are less and they appear to out perform them.

As far as I am concerned the following is one of the best funds, however, I must stress, that is just my opinion!

http://www.australiansuper.com/

Mara

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Short and sweet. All employers are obliged to pay a minimum of 9% of your gross income into a superannuation fund of your choice. You cannot touch this money until retirement. If you change employers you can stay with the same fund. You are allowed to contribute of your own funds to the fund as well, many people do this, as it has tax advantages for you.

I think it better to place your contributions into a pure super fund and not into one affiliated to an insurance company or bank. The admin fees are less and they appear to out perform them.

As far as I am concerned the following is one of the best funds, however, I must stress, that is just my opinion!

http://www.australiansuper.com/

Mara

Hi there Mara,

Thanks for your reply and explanation - a great help

I really like the fact that one can contribute to the fund over and above your employers portion and the tax break one can get.

will check out your suggestion re the Pure super fund

cheers

Gavin

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No problem, glad to have been of assistance.

Mara

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