I suppose by now most of you have your super fund statements for the last 6 months. Whose idea was it to make us put 9% of our salary into (usually) the stock market? I think in theory it is actually a good idea but the market is so full of highly geared speculators and short term traders, and much more so lately (see CFD's et al) that in principle it is now a casino, and we're forced to gamble.

Can you imagine the fund managers when super was conceived? "You mean we've convinced the govt. to make everyone... everyone give us 9% of their salary!? How on earth did we pull that off?".

Who would agree it should be made optional?

Perhaps against a mortgage which would make credit easier and lower interest rates (possibly push house prices up)?

(please no conspiracy vids, although my 2nd paragraph does hint at a rort of some type)

Hmmmmnn yeah, wish I'd had the option to p!ss my super against the wall this year. Coz, as it stands, I've had to work for it and now someone else has p!ssed it all away.

Definitely a big WTF

A very well orchestrated scam by all definitions.

GreenPat said...

While you mention super, I got my annual bonus letter today which contained the text:

The bonus amount is inclusive of Superannuation as per the Superannuation Guarantee Administration Act 1992 and the
Superannuation Guarantee Charge Act 1992.Tax will be withheld at the applicable rate and the net amount credited to
your account in the September 2008 salary run.

So I don't get the money until September, but what's this about including super in the bonus? The boss mentioned to me something about changes to legislation or something, he sounded a bit unsure himself, but if they are changes why are the acts mentioned 1992? Anyway, it looks like I get my bonus then I lose 9% to super then however much tax is before I get to have a look at it myself. Grumble grumble.

Bonus....??? cool you can give me that $50 you owe me.

whats super?

I do, well this past finacial year i do, saved me about 200k in capital gains tax.

if you have enough in supa to self manage you can just buy some property and use that as a good chunk of your super fund instead.

I would rather put it into supa than live on a pension and pay higher taxes.

WINDY MILLER said...

whats super?

I think it's what you call a person who rides on of those ridiculously big surf boards that you have to paddle like a goat boat

The Co' that I work for pay the bonus and then pay the "COMPULSORY" 9%, super allocation, on top of that... anyone that doesn't is a real kn jerk... and I work for a Co that is based in a country renowned for their ability, and want, to screw people. My bonus is enough for a new kite or a couple of boards... maybe I am getting screwed, but at least, they're upfront about it.

GreenPat said...

hills said...



We have to complete a form each year nominating how much of our bonus goes into super. If you don't reply they take out 9%, but you can nominate what ever you like. Some people over fifty nominate it all to go into super.

I didn't see any form. Can you nominate less than 9%, ie. zero?

You can at my work and many do, but your super can't be less than 9% of your total salary, including bonus. Therefore the only people who are able to do it are those who are salary sacrificing additional into their super.

One woman had to do this as she had already salary sacrificed as much into super as she could at the reduced super tax rate and if she paid any of her bonus into super it would have been taxed at the normal rate.

Yeah I'm a total cost employee so the salary in my contract is inclusive of super therefore I can do what ever I want about super. Being lazy I just opted for them to deduct 9% and pay it into the companies default super provider, who aren't doing too badly, but others manage their own super funds or opt for other super funds.

I guess this is why we have the option to fill out the form regarding the percentage of bonus that goes to super.