Making super simple with ICAN and the First Nations Foundation
We heard requests from some Aboriginal and Torres Strait Islander peoples to provide their communities with simple education materials. AustralianSuper worked with the Indigenous Consumer Assistance Network (ICAN) and the First Nations Foundation to produce a series of videos that explore the essentials of superannuation in basic terms, with supporting images.
ICAN provides consumer education, advocacy and financial counselling services to Aboriginal and Torres Strait Islander consumers across the nation.
Together, we aim to make it easier to understand super, including:
- What is superannuation?
- Who has superannuation? How do I know if I have Superannuation?
- How is superannuation gathered?
- What are your boss’s obligations in paying super?
- When can I access my super?
- When can super be withdrawn early?
- How do we make sure we cut down on fees by combining super?
- What is insurance and why is it important?
- How do I know if I have insurance?
- Who receives my super when I die?
- Who can I nominate to receive my super?
- What should people do when someone passes away?
- How do I provide ID to my super fund?
- Why does your super fund need your information?
- Why is it important to maintain your records with your super fund?
What is superannuation?
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What is superannuation?
Superannuation is a way of saving money while you are working so you will have money when you retire.
Your boss pays any super that you have earned into a Superfund, and it is the Superfund's job to look after this money and invest it until you retire.
This money is paid on top of your wages.
Your super account is a bit like your bank account, only with tax advantages and strict rules on when you can take your money out.
Generally, you can't take any money out of super until you turn 60 and finish work.
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Who has superannuation? How do I know if I have Superannuation?
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Who has super and how do I know if I have superannuation?
Generally, if you've earned any income, then your boss must pay super for you. This is on top of your wages.
There are some situations where you won't earn any super. If you're under 18 and work less than 30 hours a week, your work doesn't have to pay super for you.
Any super that you've earned must be written on your pay slip.
Your pay slip will show you how much super you've earned and what super fund it will be paid to. If you think you've earned super and it's not on your pay slip, ask your boss.
You should also check with your super fund that it has been paid. Members of AustralianSuper can download an app and register for online access through the website so that you will get a message every time a contribution is put into your super account.
This way you will know when your boss has paid super into your account.
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How is superannuation gathered?
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How is superannuation gathered?
In most cases, your boss must pay a certain percentage of your wage into your super account. These contributions are generally taxed at 15%.
If you earn less than $37,000 a year you may get up to $500 from the tax office when you do your tax return and it is paid into your super account. This is called the Low Income Super Tax Offset and depends on the tax deducted from your super contributions.
You could also add extra money to your super from your take home pay or bank and this won't be taxed. If you do this, you might get extra money from the government called the Government Co-contribution, which matches up to 50% of your extra contribution up to $500. To qualify, you need to do a tax return and there are limits based on your income.
There are also limits on how much you can put into your super.
So before adding to your super, consider your financial circumstances, eligibility, contribution caps, and your tax issues.
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What are your boss’s obligations in paying super?
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What are my boss's obligations in paying super?
Your boss must pay into a super fund that you choose. Usually you have the option to pick your own fund.
Your boss must give you a Superannuation Standard Choice form within the month of starting work, which lets you choose your own super fund or go with your boss's default fund.
If you don't choose a fund or return the form, your work will check with the tax offers to see if you have an active super fund. If you do, your super will go there. If not, it will go to the default fund on the form.
Your boss has to pay your super at the end of every quarter by the end of July, October, January and April. They can also choose to pay more often, which benefits you. There are a few places to get help on your super.
People can call the AustralianSuper Helpline on 1300 300 273 or there's the Money Smart Indigenous helpline on 1300 365 957 or the ATO First Nations helpline on 13 10 30.
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When can I access my super?
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When can I access my super?
You can access your super when you reach your preservation age, which is now 60 and have retired.
You can also access your super when you've changed employer on or after you've turned 60, or once you've reached 65, even if you're still workingEnd transcript
When can super be withdrawn early?
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Can super be withdrawn early?
You can take money out of your super before reaching your preservation age, but only in special situations. The rules are strict about when this can happen.
You can access your super early if you are totally and permanently disabled; you have compassionate reasons for needing the money; you have a terminal illness and are likely to pass away within two years; you're experiencing severe financial hardship and can't cover your living expenses.
But if you take out your super before you turn 60, you may have to pay tax on it.
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How do we make sure we cut down on fees by combining super?
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What is insurance and why is it important?
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What is insurance and why is it important?
Insurance in superannuation may provide a financial or money benefit in the case of unexpected illness or if you pass away.
This insurance can include life insurance, which provides a benefit to your beneficiaries if you pass away, total and permanent disability TPD insurance, which offers financial support if you become permanently disabled and can't work, and income Protection insurance, which helps replace lost income if you can't work for a while due to illness or injury.
Insurance is generally not made to match your specific needs.
You can contact your super fund to change your insurance to your needs or opt out of your insurance cover if you prefer.
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How do I know if I have insurance?
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How do I know if I have insurance?
Insurance is often provided as part of your super fund’s offer, once you have reached the age of 25, your super account balance reaches $6000 and you have received an employer contribution into your account.
If you're not sure whether you have insurance or what type you have or when it starts, it is a good idea to check with your super fund.
If you are an Australian Super member you can view your insurance details, apply for cover or change your existing level of cover at any time by downloading the mobile app and registering, logging into your Australian Super account online or calling the Australian Super Helpline on 1300 300 273.
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Who receives my super when I die?
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Who receives my super when I die and can I nominate who receives my super?
You can choose who your super and insurance is paid to if you die. You choose by making a nomination, which means you tell your super fund your wishes.
There are three different sorts of nominations you can make with your super fund.
With a lapsing binding nomination, you tell your super fund in writing who should get your super and death benefit if you die.
It's a legally binding document, so if it's valid, your super fund has to follow your instructions. You usually need to update it every three years to keep it valid. If it's not updated after three years, it's not binding.
With a non-lapsing binding nomination you tell yourself super fund in writing who should get your super and death benefit if you die and it doesn't need to be updated, it will only change if you change it.
With a non-binding nomination you tell your super fund who should get your benefit and the super fund will consider your wishes following the relevant laws. You can do this quickly on a computer if you have access to on.
If you haven't made a binding nomination, your super fund will follow the relevant laws to decide who receives your money. It will go to either one or more of your dependents or to your legal personal representative.
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Who can I nominate to receive my super?
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Who can I nominate to receive my super?
People you want to receive your super then the insurance benefits if you pass away called your beneficiaries. Your beneficiaries can be your husband, wife or partner, your children, interdependents (which is someone that lives with you and shares a close personal relationship where one or both of you provide financial and domestic support and personal care for the other), other financial dependents, such as someone who relies on you financially or a legal personal representative.
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What should people do when someone passes away?
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What should people do when someone passes away?
You should let their Superfund know that they've passed away by calling or emailing them.
AustralianSuper wants to be sensitive to your cultural needs at this sad time.
You can let the fund know that you can't say the name of the person that has passed away, but you can spell it.
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How do I provide ID to my super fund?
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How do I provide ID to my super fund?
Sometimes you'll need to show your super fund your ID. You can provide ID to your super fund using a range of documents. This helps the super fund know who you are so you can have access to your super.
Some super funds like Australian Super have a special ID form for Aboriginal and Torres Strait Islander people who don't have all of the other ID documents.
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Why does your super fund need your information?
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Why is it important to maintain your records with your super fund?
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Why is it important to maintain your records with your super fund?
Keep your details up to date with your super fund to make sure you receive all your super. This helps your super fund manage your account and allows you to access your super when needed.
If your address or contact information is outdated, you might miss important updates, tax information, or opportunities to review and adjust your insurance coverage.
Updating your details if you change your name or move house helps you stay informed and in control of your superannuation savings.
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