Superannuation Funds and Investments - Cantoraccounting

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Superannuation Funds and Investments cantoraccount
ing.com.au
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Introduction

• Superannuation funds and investments are
  something towards which at specific time
  intervals the employee as well as the employer
  contributes a certain amount of money. It becomes
  mandatory for the employers to make contributions
  towards this fund, for the employees it is a
  voluntary affair to do so. When the employ
  attains a specific age a whole lump sum is
  released to him. The main assets in super funds
  that can be invested in are bonds, property,
  cash, shares, and other fixed interest
  investments.

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Categories

• Youre eligible to choose the super fund in case
  youre an employee and your employer pays your
  super guarantee (SG) but you have to be in one of
  the three categories below.
• Under a federal award youre employed.
• Youre even employed under another award or
  workplace agreement that doesnt need any type of
  Superannuation funds and investments support.
• Under an award or industrial agreement youre
  never employed. This consists of contractors who
  are primarily paid for their labour.

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Potential Options

• There are five potential options (though not
  every option is available to everyone) if you are
  eligible to choose your super fund.
• Retail funds These are funds that are run by
  financial institutions. Generally they reopen to
  anyone.
• Industry funds For people who work in a
  particular industry these funds are usually
  designed, but there are few industry funds who
  will allow anyone to join.

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• Public sector funds Usually these funds are only
  open to government employees.
• Corporate funds These funds are only available
  for employees who work for a specific employer.
• Self-managed super funds (SMSFs) These are
  funds where in terms of administration,
  compliance and investment decisions you have more
  responsibility.

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Advantages

• For a Self managed Super Fund there are a number
  of advantages that can be beneficial to you such
  as
• In the utilization of the pension income
  streams as well as superannuation offers it
  provides increased flexibility
• In selecting an asset or deciding on an
  investment provides greater flexibility
• On your investment's portfolio it allows for
  your absolute management
• Gives you saving in taxes
• If the SISA Act recognizes the asset it gives
  opportunity to borrow limited resource
• Into the Superannuation funds and investments
  it gives liberty to transfer your shares or
  securities

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Contact Us

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