A 'Super' Question !
Jun 5th 2009, 12:10 pm
#1
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Thread Starter
Joined: Mar 2009
Location: Perth, WA
Posts: 125
A 'Super' Question !
I know there have been loads of question on this already, but after reading most of them I am now even more confused.
The role details are :
Salary level: $65 000 per annum and the Queensland health page states that
So from what I gather, the Super payment will be *not* deducted from this amount and this is the take home pay after super has been deducted, or have I got that wrong way round?
Also. I read that Super is 9% of payment, but the site also states ...
So does this mean you pay Super twice? One time at 9%, then another at 5%?
Very confused. Can get no idea of take home pay if I cant figure out how much the pay will be !
Al
The role details are :
Salary level: $65 000 per annum and the Queensland health page states that
Does my salary include superannuation?
In most cases, no. But please check all position information carefully to be sure.
In most cases, no. But please check all position information carefully to be sure.
Also. I read that Super is 9% of payment, but the site also states ...
Do I have to pay additional superannuation contributions?
Yes. All new Queensland Government employees (excluding casuals) automatically pay 5% superannuation.
Yes. All new Queensland Government employees (excluding casuals) automatically pay 5% superannuation.
Contributions
Queensland Government will contribute to your superannuation scheme up to 12.75% of your annual salary.
Most new QSuper members (except casual employees and police officers) start paying standard contributions of 5% of salary, while your employer contributes 12.75%. You can choose to pay less than 5% (to a minimum of 2%), however, this means your employer also pays less. The table below shows how much your employer pays depending on your own contributions.
You pay Your employer pays
2% 9.75%
3% 10.75%
4% 11.75%
5% 12.75%
Queensland Government will contribute to your superannuation scheme up to 12.75% of your annual salary.
Most new QSuper members (except casual employees and police officers) start paying standard contributions of 5% of salary, while your employer contributes 12.75%. You can choose to pay less than 5% (to a minimum of 2%), however, this means your employer also pays less. The table below shows how much your employer pays depending on your own contributions.
You pay Your employer pays
2% 9.75%
3% 10.75%
4% 11.75%
5% 12.75%
Very confused. Can get no idea of take home pay if I cant figure out how much the pay will be !
Al
Last edited by al_and_lucy; Jun 5th 2009 at 12:12 pm.
Jun 5th 2009, 12:18 pm
#2
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Joined: Dec 2002
Location: Keep true friends and puppets close, trust no-one else...
Posts: 93,814
Re: A 'Super' Question !
I know there have been loads of question on this already, but after reading most of them I am now even more confused.
The role details are :
Salary level: $65 000 per annum and the Queensland health page states that
So from what I gather, the Super payment will be *not* deducted from this amount and this is the take home pay after super has been deducted, or have I got that wrong way round?
Also. I read that Super is 9% of payment, but the site also states ...
So does this mean you pay Super twice? One time at 9%, then another at 5%?
Very confused. Can get no idea of take home pay if I cant figure out how much the pay will be !
Al
The role details are :
Salary level: $65 000 per annum and the Queensland health page states that
So from what I gather, the Super payment will be *not* deducted from this amount and this is the take home pay after super has been deducted, or have I got that wrong way round?
Also. I read that Super is 9% of payment, but the site also states ...
So does this mean you pay Super twice? One time at 9%, then another at 5%?
Very confused. Can get no idea of take home pay if I cant figure out how much the pay will be !
Al
Jun 5th 2009, 7:54 pm
#3
Forum Regular
Thread Starter
Joined: Mar 2009
Location: Perth, WA
Posts: 125
Jun 6th 2009, 4:04 am
#4
Guest
Posts: n/a
Re: A 'Super' Question !
The 9% superanuation contribution rate by the employer is the Minimum that they have to pay by law.
So, in your case, the employer pays the 9% on top of your $65,000, therefore paying out $70,850 in total for you.
It is actually a bit similar to the way NI is done in the UK, with the employer paying some NI contributions, as well as the employee paying their bit.
However, being a government employee, you get the benefit of one of their extra schemes, where you pay money into your super, and they make extra contributions on your behalf.
It seems like you must pay at least 2% yourself.
This is a calculation of the options:
Most people would opt for the 5%, as they get the maximum benefit from the increasing employer contributions up to that level.
The above applies in varying forms to most government employees.
Normal employees normally only get the 9% minimum required.
So, in your case, the employer pays the 9% on top of your $65,000, therefore paying out $70,850 in total for you.
It is actually a bit similar to the way NI is done in the UK, with the employer paying some NI contributions, as well as the employee paying their bit.
However, being a government employee, you get the benefit of one of their extra schemes, where you pay money into your super, and they make extra contributions on your behalf.
It seems like you must pay at least 2% yourself.
This is a calculation of the options:
- You pay 2% and keep $63,700 before tax
They pay 9% + 0.75% extra = 9.75% super = total cost to them $71,337.50
- You pay 3% and keep $63,050 before tax
They pay 9% + 1.75% extra = 10.75% super = total cost to them $71,987.50
- You pay 4% and keep $62,400 before tax
They pay 9% + 2.75% extra = 11.75% super = total cost to them $72,637.50
- You pay 5% and keep $61,750 before tax
They pay 9% + 3.75% extra = 12.75% super = total cost to them $73,287.50
- You pay 6% and keep $61,100 before tax
They pay 9% + 3.75% extra = 12.75% super = total cost to them $73,287.50
(notice how the employer no longer pays extra after you reach 5%)
Most people would opt for the 5%, as they get the maximum benefit from the increasing employer contributions up to that level.
The above applies in varying forms to most government employees.
Normal employees normally only get the 9% minimum required.
Jun 6th 2009, 4:40 pm
#5
Forum Regular
Thread Starter
Joined: Mar 2009
Location: Perth, WA
Posts: 125
Re: A 'Super' Question !
Oooo thanks for the explanation ABC 
Jun 7th 2009, 2:19 am
#6
Forum Regular
Joined: Nov 2005
Location: Parkwood, Gold Coast, Australia
Posts: 77
Re: A 'Super' Question !
Very good explanation ABC. I am a finacial planner and was going to reply to this thread but could not have responed better myself.
Will
Will
The 9% superanuation contribution rate by the employer is the Minimum that they have to pay by law.
So, in your case, the employer pays the 9% on top of your $65,000, therefore paying out $70,850 in total for you.
It is actually a bit similar to the way NI is done in the UK, with the employer paying some NI contributions, as well as the employee paying their bit.
However, being a government employee, you get the benefit of one of their extra schemes, where you pay money into your super, and they make extra contributions on your behalf.
It seems like you must pay at least 2% yourself.
This is a calculation of the options:
Most people would opt for the 5%, as they get the maximum benefit from the increasing employer contributions up to that level.
The above applies in varying forms to most government employees.
Normal employees normally only get the 9% minimum required.
So, in your case, the employer pays the 9% on top of your $65,000, therefore paying out $70,850 in total for you.
It is actually a bit similar to the way NI is done in the UK, with the employer paying some NI contributions, as well as the employee paying their bit.
However, being a government employee, you get the benefit of one of their extra schemes, where you pay money into your super, and they make extra contributions on your behalf.
It seems like you must pay at least 2% yourself.
This is a calculation of the options:
- You pay 2% and keep $63,700 before tax
They pay 9% + 0.75% extra = 9.75% super = total cost to them $71,337.50
- You pay 3% and keep $63,050 before tax
They pay 9% + 1.75% extra = 10.75% super = total cost to them $71,987.50
- You pay 4% and keep $62,400 before tax
They pay 9% + 2.75% extra = 11.75% super = total cost to them $72,637.50
- You pay 5% and keep $61,750 before tax
They pay 9% + 3.75% extra = 12.75% super = total cost to them $73,287.50
- You pay 6% and keep $61,100 before tax
They pay 9% + 3.75% extra = 12.75% super = total cost to them $73,287.50
(notice how the employer no longer pays extra after you reach 5%)
Most people would opt for the 5%, as they get the maximum benefit from the increasing employer contributions up to that level.
The above applies in varying forms to most government employees.
Normal employees normally only get the 9% minimum required.
