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To recognize just how much you are actually paying in superannuation costs, you have to demystify the different ways products and funds define them. In June 2004 the SIS Act and Regulations were amended to call for all superannuation trustees to relate to come to be a Registrable Superannuation Entity Licensee (RSE Licensee) on top of that each of the superannuation funds the trustee runs is likewise required to be signed up.

Even taking more recent estimates from the Australian Prudential Guideline Authority (APRA) based on data super fees explained funds report to the regulator-- which does not count all fees and charges-- we are estimated to spend about $19.3 billion.

Such an arrangement is known as "wage sacrifice", and for income tax purposes the settlements are dealt with as company superannuation contributions, which are generally tax deductible to the company, and are exempt to the superannuation assurance (SG) rules.

The Howard federal government additionally limited employer SG contributions from 1 July 2002 to a staff member's regular time revenues (OTE), that includes incomes and salaries, as well as benefits, commissions, change loading and casual loadings, yet does not consist of overtime paid.

Unique regulations use in regard to employers running" specified advantage" superannuation systems, which are less typical standard company funds where advantages are established by a formula usually based on a staff member's last average salary and size of service.