Intrust Super - What Is Superannuation

What is Superannuation?

Hospitality Crew: So Brendan what's super designed for?
Brendan O'Farrell: Super's been designed for providing members of superannuation funds with a benefit in retirement. This benefit in retirement will depend on the amount of money that they've contributed throughout their working career and the time frame which it's been contributed for. So what that's really saying is the earlier you start and the longer you pay for will provide you with a greater standard of living in retirement. So its' important to start early and top it up yourself.
Hospitality Crew: And who's eligible for super?
Brendan O'Farrell: Generally if you 18 and older and earn more than $450 a month in salaries or wages your employer will be compelled to pay for you 9% of those wages and salary. As an example if your earning $20,000 per year, 9% on $20,000 is approximately $1,800 that would be paid into your superannuation account.
Hospitality Crew: What are the main benefits of super?
Brendan O'Farrell: The main benefits of superannuation focuses around that tax effect of those payments which get paid into your superfund. As an example investment earnings are applied to your super account are taxed at 15% instead of your marginal tax rate and employer contributions that are paid into your super fund are also taxed at the same rate which is 15%. One of the major initiatives of the government this year, effective July 2007, was that any benefits paid to an individual who is 60 years of age or older is tax free.
Hospitality Crew: It all sounds a bit too good to be true, what's the catch?
Brendan O'Farrell: I suppose, there's always a catch if you really want to call it that. But one of the main things the government does with those contributions that are paid, is that they require that they are preserved until you retire from the work force. So, what that really means is that contributions paid by yourself or your employer into your superannuation fund are generally preserved until you are permanently retired from the work force, which means you can't get your hands on it.

Thanks to the wonderful people at Siggi's - the Stamford Plaza in Brisbane for allowing us to film this segment there - so cool

Intrust Super - Choice Of Superannuation

Choices In Superannuation

Hospitality Crew: There's been a lot about choice of superannuation fund in the media lately what's that all about?
Brendan O'Farrell: Choice of superannuation was introduced in July 2005. It was predominantly introduced to give members of the public and members of superannauation funds greater flexibility in control over where they want their employer contributions paid to. So if they weren't happy with their current provider of superfund that could just take the money from them and place it into another fund in which better meets their needs.

Hospitality Crew: What are the benefits of choice?
Brendan O'Farrell: The benefits of choice, control, flexibility, they would be the two main benefits. It gives the individual more control over their destiny going forward.

Hospitality Crew: Can anyone choose their own superfund?
Brendan O'Farrell: The majority of people do get to be able to choose their own super fund, but there's some exceptions. Some of the exceptions are that if the employer has an enterprise bargaining agreement in place or a collective agreement in place, under these types of agreements they usually nominate a superannuation fund which prohibits choice.

Hospitality Crew: How do I go about getting my employer to pay into the fund I choose?
Brendan O'Farrell: First of all I'd contact your HR department or payroll department to actually ascertain if you do have choice. If you do have choice complete the superannuation choice form, hand it back to your payroll department or HR department and that will ensure that your future contributions are paid to the fund that you've nominated.

Thanks to the great folks at Siggi's - the Stamford Plaza in Brisbane for allowing us to film this segment there

Intrust Super - Co-Contribution

Just what is Co-Contribution?

Hospitality Crew: The co-contribution is bandied about in the media a lot, what does that mean?
Brendan O'Farrell: It a nutshell $1,500 for nothing. It's a fantastic initiative. Were else can you get $1,500 for nothing?. You make $20 bucks as an after tax voluntary contribution paid into your super fund and your earning under $28,000 per year the government will top that up with $1,500.

Hospitality Crew: So you're saying that anyone that makes their own contribution will get an extra $1,500 from the Government?
Brendan O'Farrell: If you are earning under $ 28,000 per year and you make that $20.00 a week contribution you will receive the $1,500 from the government. This phases in and reduces to zero if your income exceeds $59,000 per year. So another example might be if your earning $45,000 per year, that same $20 will actually give you and extra $700 from the ATO.

Hospitality Crew: If I pay in my money throughout the year when does the government pay there's in?
Brendan O'Farrell: The government usually makes contributions into the members superannuation fund really around mid to late December of each year. This is high dependant on when the individual actually lodges their tax return. Most individuals lodge a tax return before the end of the 31st of October of each year, so if its lodge by the 31st of October you can probably expect some sort of payment from the government sometime December yearly. This of course can vary and your contribution can flow into your fund at any time as you may lodge a tax return at a later date.

Thanks Siggi's at the Stamford Plaza in Brisbane for allowing us to film this on your premises