Superannuation

The super guarantee charge is a minimum contribution of a percentage of an employee's ordinary time earnings by an employer into a superannuation fund. Under what circumstances is an employee eligible for the compulsory guarantee payments by an employer? When they are:

• Aged between 17 and 70 years.

• Earning a minimum of $400 taxable income in a calendar month.

• Working more than 20 hours per week if aged under 18.

• None of the above.

Megan is a self-employed electrician and she wants know whether she can contribute to superannuation. Can she contribute each month?

• No. As she is self-employed, she cannot contribute.

• Yes. She can pay into a super fund with her own contributions.

• Yes. She can make each person she deals with contribute 9.25% of the value of work she does for them.

• No. She can only contribute once a year.

Some of the employees want to 'salary sacrifice'. Is it legal for the company to allow employees to 'salary sacrifice'?

• Allowed

• Not allowed

What things should you compare when you're choosing a super fund?

• Fees, investment options and long-term perfomance

• Last year's investment return

Kwong has changed jobs a number of times and its not sure if all the super he received from earlier jobs has been rolled over into his new super fund. The best way he can find out if he has lost any super is to:

• Ask his present employer

• Ask all of his previous employers

• Check the ATO website

• All of the above

The manager of a novelty business has asked you a number of question about superannuation. Read the statements below and select the actions the company is allowed with regard to superannuation.

• The business sometimes has cash flow problems and we want to pay the super guarantee into an employee's super fund every six months.

• As part of a new enterprise bargaining agreement, it is agreed that the company will pay a 12% super guarantee contribution.

A 30-year-old employee who is earning $25,200 per year is making an extra super payment of $400. How much super co-contribution is he entitled to?

• $400

• $100

• $200

• $300