Dedicated To Lower Charges

To recognize how much you are actually paying in superannuation costs, you need to demystify the various means products and funds describe them. In June 2004 the SIS Act and Rules were changed to call for all superannuation trustees to relate to come to be a Registrable Superannuation Entity Licensee (RSE Licensee) on top of that each of the superannuation funds the trustee operates is also required to be registered.

Other than a few very particular provisions in the low superannuation fees Market (Guidance) Act 1993 (largely pertaining to investments in assets related to the company or impacting a self-managed superannuation fund) funds are not subject to specific asset needs or investment regulations.

Such a setup is called "income sacrifice", and for income tax purposes the settlements are treated as employer superannuation contributions, which are normally tax obligation insurance deductible to the company, and are exempt to the superannuation warranty (SG) regulations.

The Howard government additionally minimal employer SG contributions from 1 July 2002 to a staff member's regular time incomes (OTE), that includes wages and salaries, as well as bonuses, payments, shift loading and casual loadings, however does not include overtime paid.

Unique guidelines use in relation to companies operating" defined benefit" superannuation systems, which are much less common conventional company funds where advantages are identified by a formula usually based upon an employee's last ordinary income and length of service.