How it all started

Most Australian employers are required by Government legislation to make superannuation contributions for their employees – called Superannuation Guarantee (SG) contributions. From 1 July 2024, SG contributions are 11.5% of an eligible employee’s Ordinary Time Earnings (subject to a maximum dollar limit). Ordinary time earnings are generally what you earn for ordinary hours of work, including over-award payments, commissions, allowances, bonuses and paid leave. The SG contribution rate is legislated to gradually increase to 12% over time. To be an eligible employee, you must be aged 18 or more, and can be:

Full-time, part-time or casual;

• A temporary resident, such as a backpacker or working holiday maker;

• A company director;

• A family member working in your business; and/or

• Receiving a super pension or annuity while working.

Special eligibility rules exist for:

• Employees aged under 18 – must work for their employer more than 30 hours per week;

• Domestic or private workers (i.e., nanny, housekeeper, carer) engaged personally and not as part of a business – must be engaged for more than 30 hours per week;

• Contractors – must be paid mainly for their labour.

Some awards, enterprise agreements and other registered employment agreements have extra terms about superannuation. These terms apply on top of the superannuation guarantee.

SG contributions are currently required to be paid by an employer to an eligible employee's superannuation fund at least quarterly, however this may change in the future. These payments will typically be shown on your payslip.

It is possible to have multiple super fund accounts, so it is important to tell your employer about your Verve Super account if you want that employer’s contributions to be paid into your Verve account.

You can find out more information about eligibility for super here.

Generally, your employer must make regular compulsory contributions to your superannuation fund, known as Superannuation Guarantee (SG) contributions. Most people can choose the super fund for these contributions; it’s called having a “Choice of Fund”.

If you haven’t exercised choice in the past, it’s possible that you might have had a new super account created for you each time you’ve joined a new employer, even if you already had an existing super account.

To stop the creation of multiple super accounts, the Government has introduced a system whereby your existing super fund (usually the fund with your most recent active super account) is ‘stapled’ to you when you change jobs. This means that when you start a new job, your employer will pay SG contributions to the same fund you had at your last job, unless you take action to make a change. Your employer will obtain information about your existing super fund from the ATO.

If you have never had a super account before you can choose one and provide your employer with the fund’s details in writing, this is called “exercising choice”. Otherwise, your employer will create an account for you with their default fund.

To request your employer to start paying SG contributions into your Verve Super account, you can simply provide the Choice of Super Fund form to your employer. We will give you this form when you set up your account. If you later change employers, your account with Verve Super should be your stapled account, however if you want to ensure your new employer contributes to your Verve Super account, you can simply email the form to your employer, reprint the form available online, or call us and we will send you a copy.

It’s important you take an interest in your super and help it grow into a healthy retirement nest egg. Further information on choice and stapling is available on the ATO’s website.

A small number of Australians who are under Enterprise Agreements are not eligible to choose their super fund. To find out if this is your situation, speak to your employer. Employers may agree to pay superannuation into your Verve Super account even if they don’t generally allow choice.

Yes, superannuation is an investment. The money in your super account is invested on your behalf, so it is important to make sure the way it is invested aligns with your values and long-term goals.

Some things to consider are: Does your super fund invest in things that go against your values? Is your fund transparent about what they are investing in? Is the risk profile suitable for your needs? Is your super fund achieving competitive long-term returns? (Remember super is a long-term investment. The money in your account may be invested for 30 years or more.

Superannuation is a compulsory scheme, designed and regulated by the government to help you save for retirement.

Unlike a regular savings account, your superannuation is only accessible when you reach your preservation age and permanently retire from the workforce, or if you meet another specified condition of release.

In most cases, it is compulsory for your employer to make contributions to your superannuation account on your behalf. You can also make personal contributions to your superannuation account, if you choose to boost your savings or if you are self-employed. This money is then invested on your behalf by your super fund.

One of the benefits of super is that it is designed to be a tax-effective way to save for your retirement, as contributions and investment earnings in your super fund are typically taxed at a lower rate than your normal earnings.

To make additional contributions to your super account, simply use the information available in your online account and make the payment via BPAY. Our Member Engagement team can also provide you with your personal details.

An annual contribution cap applies to personal contributions, and if you breach this cap, you may be required to pay additional tax. For more information on contribution caps view the How Super Works Guide or visit the ATO’s website.

If you have any questions, please call 1300 799 482 or email hello@vervesuper.com.au.