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Shoulda, woulda coulda

I have been working in real estate and have received a gross amount of $7045.15 in my wage. How much superannuation should I have been paid?

Employers are obliged to put superannuation contributions into a chosen super fund under what is called the Superannuation Guarantee legislation. Currently, the amount paid should be nine per cent of your gross wage (though the Government flagged an increase to 12 per cent in the future). So the simple answer to your question might be nine per cent of $7045.17, which would be around $634. However, this would be right if all the money you earned was what is called ordinary time earnings.

So what are ordinary time earnings? It includes normal pay plus commissions and bonuses. That said, some pay does not attract the nine per cent super payment. This includes payments to someone 70 years of age or over. For someone under 18 years of age and working less than 30 hours a week, there is an exemption. Also, if you earn under $450 a month, though some awards can overrule this exemption.

I hope that helps and it does show it’s always a good idea to see what rules apply to tax and super matters. By the way, in case you are checking up on a boss you don’t trust, I should point out that some places pay their super monthly while others pay quarterly. This means you could leave a job and be a few weeks short of the quarter and that would mean your last super payments might not have been paid. On the other hand, some bosses do break the law and not pay someone’s super. If that is the case, contact the Australian Tax Office which supervises super.

For advice you can trust book a complimentary first appointment with Switzer Financial Services today.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

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Published on: Monday, November 08, 2010

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