These days we all invest in Superannuation. Since the
introduction of the Superannuation employer guarantee scheme in
1992, employers must withhold from salary earners' pay-packets
a prescribed percentage (currently 9.5% per centum) of their gross
employment remuneration and remit that money to either:
- an industry superannuation fund established for the particular
benefit of members of specific industries;
- a retail superannuation fund operated by large insurance
companies or financial institutions with investment businesses e.g.
Colonial First State, AMP, National Mutual Bank; or
- the employee's Self Managed Superannuation Fund
(SMSF)
Subject to defined limits, every employee may salary sacrifice
their before tax wages as a "concessional" contribution
or pay their after tax money as a "non-concessional"
contribution into their superannuation fund. A concessional
contribution may be claimed as a deduction in the member's tax
return in the fiscal year it is
