Understand super in 5 minutes
Superannuation is a way for people to save money while working to help pay towards their retirement.
When does an employer have to pay super?
In general, if you're aged 18 or over and earn at least $450 (before tax) per month from an employer, they must pay at least 9.5% into a super account.
Note: If you're self-employed or a contractor, the person or entity who pays you for your services doesn't have to pay you super. However, depending on your employment structure, you may need to pay yourself super - see Super for the self-employed to find out more.
How often your employer has to pay
Your employer must make a payment to your super account at least every three months.
How much your employer has to pay
An employer must usually pay super of at least 9.5% of an employee's base salary (known as Ordinary Time Earnings or OTE). OTE generally excludes overtime and other items such as bonuses.
Example: For every $100 you earn before tax, your employer pays $9.50 into your super.
Changing jobs and your super
Withdrawing your super
Generally, as your super is designed to help save for your retirement, you can't get it out of your account until you reach your 'preservation age', which is age 60 for people born on or after 1 July 1964.
There are a limited number of early release options available if you are experiencing severe financial hardship, getting behind in your mortgage and/or needing to pay for medical treatment.
How your balance could grow
Your super account can grow over time with the contributions that go in (either from you or your employer) and the returns on investments.
Your super is automatically invested in the Balanced (MySuper) choice, unless you choose to put it in another one of our three investment options (or a mix of the three). The Balanced (MySuper) option has returned 8.49% per annum over the 10 years to 30 June 2019*.
To check or update your investment option, login to Member Online.
*Returns are compound averages, and are net of fees, costs and (where relevant) estimated tax. Past performance is not a guarantee of future performance.
How insurance works with super
When you become a member of TWUSUPER and you meet certain conditions you are provided with automatic Death and Total and Permanent Disablement (TPD) cover.
Death cover is a payment that is made if you were to pass away or be diagnosed with a terminal illness (that has a life expectancy of less than 24 months) and TPD cover is for if you are sick or injured and not able to work ever again under the terms defined in the Insurance Guide.
The insurance fees (premiums) are deducted from the balance of your super account at the end of the month. Under group insurance arrangements, insurance through super is generally cheaper than purchasing the same insurance elsewhere. You can apply to increase your cover, and can decrease or cancel your cover at any time.
Income Protection insurance (for when you're temporarily unable to work due to illness or injury) can also be provided through your super - however this cover isn't automatic, you need to apply for it.
For a comprehensive overview of insurance with TWUSUPER, see Insurance.
Who gets your money if you die
If you die while there is still money in your account, that money will be paid to your beneficiaries (which can be one or more dependants or the legal personal representative of your estate).
The super fund's trustee must pay a death benefit in accordance with the fund's rules and super legislation. This includes the balance of a super or pension account. If you have a super account it may also include the payment of any insured death benefit if you held insurance cover.
Moving your old super funds into TWUSUPER
You have the option to search for and put some or all of your other super accounts into your TWUSUPER account, so your super is combined together in one place. This is sometimes referred to as a 'rollover'.
The easiest ways to move your super into your TWUSUPER account are by calling us on 1800 222 071 or by logging in to Member Online. It only takes about 5 minutes.
Note: Before closing any of your existing super accounts you should check details such as your insurance entitlements and costs and any fees that may apply. You can transfer existing insurance cover to TWUSUPER without health checks (subject to conditions). You should do this before closing your other accounts and rolling your money into TWUSUPER.
Getting help to manage your super
Our advisers* can provide phone-based financial advice on limited topics about your TWUSUPER account including:
- the most suitable investment option for you
- the right level of insurance cover for you
- tax-effective ways to contribute to your super.
There is no extra cost for this type of advice – the cost is included in the indirect fees that apply to all super accounts.
Call us on 1800 222 071 between 8am and 8pm (AEST/AEDT) weekdays.
*The Trustee has engaged Industry Fund Services Limited (IFS) ABN 54 007 016 195, AFSL No 232514 to facilitate the provision of financial advice to members of TWUSUPER (Fund). Advice is provided by TWUSUPER financial advisers who are representatives of IFS. Fees may apply. Further information about the cost of advice is set out in IFS' Financial Services Guide, a copy of which can be obtained by calling 1800 222 071. IFS is responsible for any advice given to you by its representatives.
The cost of providing certain phone-based financial advice services is incorporated into the indirect fees that are applicable to all accounts. Fees for comprehensive financial advice provided to you either over the phone or face-to-face are charged to you directly and will be set out in your Statement of Advice.
This document has been prepared and issued by the Trustee.