To understand just how much you are really paying in low superannuation fees costs, you need to debunk the different methods products and funds define them. In June 2004 the SIS Act and Rules were modified to call for all superannuation trustees to apply to become a Registrable Superannuation Entity Licensee (RSE Licensee) furthermore each of the superannuation funds the trustee runs is also required to be registered.
Other than a couple of really particular provisions in the Superannuation Sector (Guidance) Act 1993 (mainly related to investments in assets related to the employer or affecting a self-managed superannuation fund) funds are exempt to specific asset requirements or investment regulations.
Such a setup is known as “wage sacrifice”, and for revenue tax functions the payments are treated as employer superannuation payments, which are usually tax insurance deductible to the employer, and are not subject to the superannuation guarantee (SG) guidelines.
The Howard federal government likewise limited employer SG payments from 1 July 2002 to a worker’s normal time profits (OTE), which includes wages and incomes, in addition to bonus offers, payments, shift loading and informal loadings, but does not include overtime paid.
Special rules use in connection with employers operating” specified benefit” superannuation systems, which are much less typical typical company funds where benefits are identified by a formula generally based on a staff member’s final average income and size of service.