What is superannuation?

The compulsory superannuation payments that your employer is required by law to make on your behalf ensures that you have an income when you retire. A minimum of an extra 9% of your base earnings must be deposited with a complying superannuation fund or a retirement savings account if you earn at least $450 a month and are aged between 18 and 70 years old. The superannuation guarantee is the responsibility of the employer not the employee.

Your superannuation salary includes allowances, leave payments and bonuses but not overtime or worker’s compensation.

Early access to these funds is sometimes possible if you are ill or injured and your circumstances don’t have to be work related.

It is important to get advice from a lawyer about your rights and superannuation entitlements before you inform your employer of an illness or before you reduce your hours or resign because it may be difficult to negotiate disability claims or your rights of appeal may be affected after.

What different types of superannuation funds and entitlements are available?

An employer will select a default superannuation fund for you but you are able to choose or nominate your own fund.

Not all superannuation funds are the same and if you choose your own it’s important to find one which will provide you with certain benefits if you become ill or if you die. For example, some superannuation funds include disability benefits or salary continuance benefits while others don’t. It’s important to pick a fund that best suits your current and possible future circumstances.

However, if you have a chronic illness, it may make joining some superannuation funds more difficult because you will be required to disclose any known conditions.

When am I legally entitled to my superannuation?

Normally, you can only access your superannuation after the age of 55 or when you retire. However, you may access some or all of your superannuation funds sooner if:

• you have been on Centrelink payments for at least six months and can't pay your living expenses;
• you’re over the retirement age, aren’t working and you’ve been on Centrelink payments for nine months;
• you need your superannuation to pay for medical expenses, funeral expenses or transport expenses;
• you need your superannuation to prevent your house from being sold; or
• if you are permanently incapacitated and cannot work.

What should I do if my superannuation contributions are not being paid?

The Australian Taxation Office (ATO)   is responsible for collecting unpaid compulsory superannuation payments. If your employer hasn’t made any or enough superannuation payments into your superannuation fund, you can notify the ATO which will try to collect the unpaid superannuation payments on your behalf.
www.ato.gov.au

However, this can take a several months and there is no guarantee the money will be recovered.

The Australian Prudential Regulation Authority  supervises regulated superannuation funds, other than Self Managed Superannuation funds, Approved Deposit Funds and Pooled Superannuation Trusts.
www.apra.gov.au

Self Managed Superannuation funds are supervised by the Australian Taxation Office.
www.ato.gov.au

The Australian Government website provides many links and a lot of information about superannuation including a tool to help you locate lost superannuation.
www.australia.gov.au/Superannuation