Be aware of your superannuation guarantee entitlement!
Whether you are a full-time employee, a part-time or casual employee – or even a sub-contractor – you are likely to have a superannuation guarantee entitlement that is your employer’s obligation to meet, but your responsibility to monitor that it is being met. If you have any concerns that your entitlements are not being paid correctly, or timely, you should speak with your employer; if unable to be satisfied that this results in the desired outcome, the ATO may be able to assist.
Why is it important to ensure that your superannuation guarantee entitlement is being met?
The management of your superannuation account(s) is important so as to ensure that the final accumulation of your superannuation is as great as it can be. The superannuation funds accumulated during working life is what will determine the level of lifestyle comfort that can be enjoyed in retirement.
Whether in times of volatility in share-market valuations or otherwise; whether in good or bad economic times, the superannuation guarantee legislation is designed to ensure that, with careful attention and appropriate management your superannuation will substantially subsidise your lifestyle in retirement.
What are some of the matters that impact the effective accumulation of superannuation funds?
The superannuation guarantee entitlement legislation in Australia is prone to abuse by employers – and members. Unfortunately, other laws are also recognised in their breach. Accordingly, we draw attention to some of the matters that can go wrong:
- some employers with superannuation guarantee liabilities may not always pay the amount to the trustee on time. Consequently, the member’s account does not have its funds invested for the whole of the period that they might otherwise;
- some employers use incorrectly calculate salary package amounts to determine the correct superannuation guarantee amount for their employees. This has a similar outcome to the above in that the member loses some benefit from their superannuation account;
- members fail to amalgamate multiple accounts into one that is most appropriate to their needs. This results in them –
- paying paying higher administration and management costs than they might otherwise – and possibly
- a duplication of insurance premiums, with
- adverse consequences for their final accumulated balance; and
- members fail to ensure that the funds they accumulate are invested most appropriately and in keeping with their investor risk profile. The consequence being that
- they may either undershoot their potential earnings; or
- risk market downturns and volatility that they are not comfortable with).
Superannuation management advice is available
The experienced team of financial planners at Continuum Financial Planners Pty Ltd is familiar with the superannuation guarantee entitlement provisions. They are ready to advise on a range of superannuation strategies to ensure that your best interests in regards to –
- superannuation,
- wealth management, and
- financial well-being,
are addressed.
To satisfy yourself that you are making the most of your superannuation, make an appoinjtment with one of our team. You canm do so, by –
- phoning our office on 07-3421 3456, or
- at your convenience, use the Book A Meeting facility.
(This article was originally posted by us in September 2008. We occasionally refresh/ update it, most recently in July 2025.)