Lesson 8 - Superannuation Flashcards
What is superannuation?
A retirement savings system in Australia where employers contribute a percentage of an employee’s earnings.
True or False: Superannuation is optional for employers in Australia.
False
What is the minimum employer contribution rate for superannuation as of 2023?
10.5%
Fill in the blank: Superannuation funds are typically invested in _____ to grow the savings over time.
various assets like stocks, bonds, and property
What is the purpose of superannuation?
To provide individuals with income in retirement.
Multiple choice: Which of the following is NOT a type of superannuation fund? A) Industry Fund B) Retail Fund C) Personal Fund D) Government Fund
D) Government Fund
What age can individuals generally access their superannuation?
At least 60 years of age, subject to certain conditions.
True or False: Contributions to superannuation are taxed at a lower rate than regular income.
True
What is a defined benefit superannuation fund?
A type of fund that pays a predetermined amount based on salary and years of service.
Fill in the blank: The Superannuation Guarantee (SG) is a legal requirement for employers to contribute a minimum percentage of an employee’s _____ to their superannuation fund.
ordinary time earnings
What is the role of the Australian Prudential Regulation Authority (APRA) in relation to superannuation?
To regulate superannuation funds to ensure they are managed prudently.
Multiple choice: Which of the following statements is true? A) Superannuation can be accessed at any age. B) Superannuation is only for employees. C) Self-employed individuals can also contribute to superannuation. D) Superannuation does not provide tax benefits.
C) Self-employed individuals can also contribute to superannuation.
What is the purpose of the ‘preservation age’ in superannuation?
To determine when individuals can access their superannuation savings.
True or False: Individuals can choose their own superannuation fund.
True
What happens to superannuation savings if a person passes away before retirement?
The savings can be passed on to beneficiaries as per the member’s nomination.
