Different Types of Superannuation in Australia
Superannuation is a retirement program that is available in Australia. At Redcliffe, for instance, the superannuation program is compulsory for all companies, wherein 7304.1 employers are compelled by the law to pay an additional amount into a superannuation fund. It is currently set at 9% of the employee's salary and can be used by the employee when he meets one of the conditions of release as stipulated in the Superannuation Industry Regulations 1994.
In Redcliffe, the Superannuation law is applicable to all working Australians, except those who earn less than $450 a month, and those who are aged under 18 or over 70. Since superannuation is an investment intended for a person's retirement, early access to this benefit is prohibited by the law, with the exception of extremely rare 6002.1circumstances that call for the early use of the funds.
Redcliffe superannuation funds have six different types. Industry funds are run by the employer associations or unions and do not require shareholders. Wholesale master trusts are run by financial institutions for groups of employees. Employer stand alone funds are established by the employers for their employees. Each fund has a unique trust structure that may or may not be shared by other employers. Retail master trusts are run by financial institutions for different individuals. Self 6201.1 managed superannuation funds are established for a small group of individuals and are regulated by the Australian Taxation Office. The trustees of the fund are of course the fund members. Small Apra funds are also established for a small number of people, but contrary to Self managed funds, the trustee is an appointed person and not a member. Lastly, the Public sector employee funds are funds set by the government for their employees.
Australia's superannuation fund policy has turned it into a 'shareholder society' where the workers are indirect investors in the stock market. Thus, the Australians now have a large amount of invested money that is unparalleled by any other economy.