Welcome to RBF Information in this brochure is ... - SuperFacts.com

2 Welcome to RBF
Investing in
super could
get you where
just saving
never will
Contributions
Employer contributions
Your employer makes contributions to
your superannuation each pay period.
These are called Superannuation
Guarantee (SG) contributions and they
are paid into your Investment Account.
These contributions are calculated
at the rate of nine per cent of salary.
Salary sacrifice contributions are also
counted as employer contributions.
There is a limit on how much your
employer can contribute to your super
fund each year. If your employer
contributions limit is exceeded, you
will have to pay tax on the excess
contributions at the top marginal rate
plus Medicare levy.
Employer contributions limit
Your contributions
If you are a Tasmanian Accumulation
Scheme member who is a
Tasmanian public sector employee
you automatically pay contributions
of five per cent of salary into your
superannuation. This amount will
be deducted from your salary, unless
you elect in writing to contribute at
another rate or you elect to make
no contributions. Elections to vary or
cease personal contributions should
be forwarded direct to your employer.
Personal contributions are paid into
your Investment Account.
You can contribute to super by:
salary deductions by either salary
sacrifice (counted towards your
employer contributions limit and
not your personal contributions limit)
or post-tax contributions
individual payments
(by cheque or Bpay ® )
rolling over money from another
superannuation fund.
There is a limit on how much you can
contribute to your super each year.
The personal contributions limit is
$150,000 each year or $450,000 over
three years for members under the age
of 65. These limits apply to the total
amount contributed for one person,
even if you contribute to more than one
account or super fund. An individual
contribution that exceeds the three-year
contribution limit cannot be accepted
and will be returned to you.
Personal contributions limit
Age under 65 $150,000 per year per
person or $450,000
over three years
Age 65
and over
$150,000 per year per
person after passing a
work test
How much is enough?
There are many views on this –
but the answer depends on you.
It depends on what age you start
paying superannuation, how much
you earn, how long you work, whether
you take long periods of leave, such
as parental leave – and what you want
for a comfortable retirement. You start
with your employer contributions of nine
per cent of your salary. You can make
additional personal contributions in lump
sum cash payments or as a percentage
of your salary, it is up to you.
The percentage of salary you need
to contribute to accrue a lump sum
of about $400,000 varies with age,
salary and length of service.
You should note that if you wait until
you are aged 60 or over to retire, your
accumulated superannuation savings
in the Tasmanian Accumulation
Scheme will be free from tax.
Age under 50
Age 50 to 75
$25,000 per year
$50,000 per year
(transitional arrangement
from 1 July 2007 to
30 June 2012)
Super Co-contribution
The Super Co-contribution is a
Commonwealth Government initiative to
assist people to save for their retirement.
If you are eligible* and make personal
contributions into your super, the
Government will also contribute to your
super up to certain limits.
This means that if you make personal
contributions* into the Investment
Account, up to $1,000 could be paid
into your superannuation by the
Commonwealth Government.
Super Co-contributions do not count
towards your personal contributions limit.
*Eligibility conditions including (but not limited to)
income thresholds, personal contribution levels and
age limits apply.
Percentage of salary you need to contribute per annum
to accrue a lump sum of $400,000
Age at entry
Salary
Age 60
retirement
Age 65
retirement
30 years $35,000 10.44% 5.85%
$45,000 6.42% 2.85%
$55,000 3.86% 0.94%
40 years $35,000 27.76% 17.20%
$45,000 19.89% 11.68%
$55,000 14.89% 8.16%
50 years $35,000 83.28% 45.96%
$45,000 63.07% 34.05%
$55,000 50.21% 26.47%
Note: Assumes a real rate of return of 4.5% a year compounding fortnightly. SG contributions of 9% of salary
plus personal contributions as in table. No adjustments have been made for inflation or salary growth.
The table above is intended as a guideline only and does not suggest that $400,000 is the optimum amount
on which to retire.
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