How does superannuation work?

As you are a self-employed care worker, you will need to think about your superannuation. If you don’t put money towards your superannuation, you could risk not having enough money when you retire.

Currently, super is calculated by taking 9.5% of your ordinary time earnings. To work out what super you must pay, you will need to work out what your income is per quarter.

For example: during the first quarter of the financial year (1 July – 30 September 2016) Sally’s ordinary time earnings were $8,000

Therefore, the super contribution Sally had to pay per quarter was:
$8,000 x 9.50% = $760

You can check out the ATO’s superannuation guarantee contributions calculator to work out how much super you should contribute.

You will need to pay the outstanding amount to your complying super fund or retirement savings account. Information regarding cut off dates can be accessed here.

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