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