Superannuation remains one of the most effective methods for Australians to accumulate money to use in their retirement. There are many types of superannuation that individuals and companies can use.
• Personal Superannuation – Which can be used by employees and the self employed.
• Employer Superannuation – For employers or companies who need to provide superannuation for their employees.
• Corporate Superannuation – Superannuation, group risk management, and investment services for companies of all sizes.
• Master Trusts – For when a choice of more than one fund manager (but with one consolidated investment report), is preferred.
• Self-Managed Superannuation – These are also known as “do it yourself” super funds for those who wish to establish their own fund and control their investment.
Personal Superannuation products are generally used by the self employed, or by employed persons who wish to top up their employer superannuation arrangements. Modern fund designs allow regular contributions and / or random lump sum contributions. These investments are placed in an environment with significant tax advantages and generally provide the flexibility for the contributor to modify and adjust their contributions as required. A wide range of investment sectors and fund types are available.
It is generally compulsory for employers to provide superannuation for employees. Well-structured funds and appropriate product selection can minimise the administration requirements for employers, as well as maximising the employees retirement benefit. A wide choice of funds are available and with the government’s member choice legislation still to be finalised, this is sure to be an area of the industry that will undergo much change.
Employers and corporations, wishing to provide employee benefits whilst also satisfying superannuation guarantee requirements, have a wide choice of funds available to them. In many cases these can include group salary continuance, trauma and life cover benefits as well as a vast selection of investment sectors. Salary packaging and salary sacrifice arrangements can also add value to employees and appropriate product choice will help minimise the administrative requirements placed on the employer.
Master Trusts are generally chosen by users of superannuation who want to use more than one fund manager. A Master Trust allows this and provides a single consolidated report on the returns obtained by all the selected funds. Lump Sums and insurance benefits can usually be added. Because of the ability to select many funds switching between fund sectors and adjustment of asset allocation is usually very streamlined.
The “do it yourself” superannuation market is one of the fastest growing superannuation sectors in Australia. Self-managed superannuation funds allow individuals or companies to structure their own fund (often in conjunction with other professional advisers) to maintain control of their investments.
For more detailed information or an assessment of your existing superannuation portfolio, please do not hesitate to contact our office on (07) 5577 8653. Obligation free.