CHECK YOU ARE GETTING WHAT YOU DESERVE
If you haven’t had super before, or paid little attention to it in the past, it’s time to get on top of the how, when, where and why.
By law, employers have to make super payments at least four times a year. The due dates are quarterly.
“If the employer is using accounting software like Xero, they’ll be making super contributions at the same time they pay your salary,” says Wealthadvice’s Marisa Broome “It’s just easier. But not all small businesses are that organised, so you need to keep on top of it to make sure you are getting what you are entitled to.”
Xavier O’Halloran, director of Super Consumers Australia, a leading advocacy group, says super fund members have technology to thank for their new SG contributions.
“One of the big excuses used in the past to avoid paying it was the administrative burden around having to do it for every employee. But with digitisation of staff payment systems, it’s become a lot easier.
“That’s why this change was made – the excuses were no longer there. In fact, some employers just paid super anyway, even if employees didn’t reach the $450 threshold, because it was easier to do that on their payroll systems than not do it.”
He says you might have to wait until the end of the quarter before the extra money hits your account.
To open an account, your employer will have given you a form to fill in. You can either go with their default fund or nominate another. Either way, make sure it’s one of the top performers.
“A good place to start is to set up an account on the myGov platform and get an ATO account. If you’ve got a tax file number, you’ll be able to start an account there, check your super and use the comparison tool,” says O’Halloran.
“That’s also a good place to track down any super you might have forgotten about, consolidate your accounts using that tool and save on fund fees.”
O’Halloran says the information on the tax office website can be up to a year out of date. “Super funds only have to report yearly on their accounts and balance sizes at the moment.
“Your super fund is your best place to get the most up-to-date information on your account. If your employer isn’t paying super, the ATO has an online tool where you can report it. They can follow it up with employers and make sure those payments are going through.”
The last thing you should do is hand over all your personal details to someone offering to sort out your super. It’s in all likelihood a scam. “We urge people to be pretty wary of them. A lot of the things they are offering you can get from the ATO website for free.” Useful websites are:
• ato.gov.au/Individuals/Super/Growingyour-super/Keeping-track-of-your-super
• ato.gov.au/Calculators-and-tools/YourSuper-comparison-tool
• ato.gov.au/individuals/super/growing-your-super/unpaid-super-fromyour-employer.
She says getting rid of this outdated threshold has finally fixed a super loophole that had a disproportionate impact on women and those on lower wages, helping make super fairer and taking an important step in addressing the retirement system’s gender blind spot.
“Our members spend their working lives caring for others and we welcome the federal government’s long overdue removal of this threshold, which will give our members a better opportunity to enjoy a more financially secure retirement.”
Take it a step further
While removal of the threshold is a big breakthrough, knowing where your super is and how to track it is vital, says Blakey. She recommends setting up online access to your account.
“Next, you might want to consider seeing if you can chip a little bit extra each week into your super. For most people this will be salary sacrificing, which can be a very tax effective way of boosting your super and it can be very powerful over time.
“Check that your investment is invested in a way that still matches your goals, risk appetite and time frame.”
Blakey recommends the government’s Moneysmart website for getting useful and reliable information on super at no cost.
She says often people don’t seek financial advice because they think it will be too costly or it may not meet their needs.
“Last year HESTA launched Future Planner to help our members build confidence that they’ve got a long-term financial plan. It’s a unique digital help and education approach that aims to improve access to financial expertise to our 900,000-plus members, many of whom experience barriers accessing conventional services provided by the broader industry.
“It’s designed to help them build confidence through successive small but powerful steps that give them the peace of mind of knowing they’re on track for a great retirement.”