A simple guide to the basics of superannuation, including employer's superannuation obligations, record keeping and the tax implications of superannuation.
Superannuation is designed as a long-term investment to save towards retirement.
Superannuation contributions are pooled by superannuation providers who direct the funds into a broad range of investments. In the event of retirement, disablement, or death of a member, the superannuation provider pays benefits either in the form of regular periodic payments, a lump sum payment, or a combination of both. An employer can also be someone who makes payments under a contract that is wholly or principally for their labour. However, the contract must sate or imply that the work has to be done by the person who signed the contract. A contract is wholly or principally for labour if the value of the labour component of the contract is more than 50 percent of the total value of the contract.