Regardless of your retirement dream, whether it is to travel the world or spoil your family, ensuring your superannuation fund is contributed to every quarter is fundamental to enjoying those golden retirement years.
The importance of superannuation in AustraliaAt 30 June 2016, over 14.8 million Australians had a super fund account. The majority of those people will rely on their super fund account to fund their retirement dreams.
Further, some super funds offer death, disability or income protection insurance at a cheaper rate than the industry standard.
How to tell if your employer is paying your superannuationYou may eligible for a superannuation contribution if you are earning more than $450 (before tax) in a calendar month. If you are eligible, your employer must be paying 9.5% of your earnings into your super per quarter.
A simple calculation will determine if your employer has contributed correctly. Multiply your Earning Before Tax by 9.5%. If your super fund records show a contribution less than this amount, your employer may not be paying your superannuation correctly. There are also a number of quick and easy calculators available online.
Alternatively, you can create a myGov account and link your ATO. You will need your TFN and your yearly taxable income. The ATO is able to provide details about how much money has been paid into your super account in the last two financial years and also locate any super accounts you have lost or forgotten about.
What to do if your employer is not paying your superannuationNow that you have your Super fund contribution records you have a number of options.
- Respectfully ask your employer to pay you the correct amount. You may wish to ask:
- How often they are contributing to your super fund;
- Which super fund they are contributing to; and
- How much they are contributing.
- If your employer does not rectify their error, you may wish to seek legal help.
- You can lodge an enquiry with the ATO. The ATO will investigate your employer and keep you updated about the progress.
Written by Shine Lawyers. Last modified: September 6, 2018.