When you start a job, your employer will need to make super contributions on your behalf. Most employees are free to select their own super fund. So, shop around, and decide which super fund suits your goals and preferences.
starting your career
Getting a super account set up
Getting started with super is easy. With Active Super you can join online or download and complete the Application for Membership form. Let your employer know the details of your super account so that contributions can be paid into it from day one.
Your super is also a source of low-cost personal insurances like life cover. This cover is automatic if you’re aged over 25. If you’re younger, talk to Active Super about opting in.
Which investment strategy should you select?
The way your super is invested will impact the level of super you have on retirement. Most funds offer a range of underlying investment choices. Active Super for instance, provides four main choices – from high growth to conservative.
If you don’t make a choice, your super will be invested in the Active Super Lifestage Product.
Adding a bit extra
Adding a bit extra can make a big difference to the final value of your super. One option is to speak with your employer about salary sacrifice – having part of your before-tax wage paid into super instead of receiving the money as cash in hand.
Please note that salary sacrifice contributions count towards the concessional contribution cap and penalties apply if its exceeded. You should also take into consideration the fact that you can’t access your super until you meet a condition of release.
If you earn less than $58,445 annually1, contributing to super from your own pocket could see you eligible for a government co-contribution worth up to $500 annually. Or, if your earn below $37,000 annually, you may be entitled to the ‘low income super tax offset’, worth up to $5002.
With your fund up and running, be sure to complete a binding nomination that lets them know who should inherit your super if you passed away unexpectedly.