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Superannuation generally

In the government's plan for Australian retirees to be self sufficient, the government introduced superannuation more than a decade ago to ensure that Australian have sufficient income by the time they retire by encouraging them to save for their own retirement.

Superannuation is a long-term savings arrangement where monies contributed to the superannuation fund is preserved until retirement. Employers, self-employed people, employees and family members on behalf of others may contribute to a superannuation fund.

As part of the push, it is mandatory for employers to contribute, at present, 9 percent of gross salary or wages as superannuation for employees.

A superannuation fund is a type of trust created specifically to hold and invest members' superannuation.

The superannuation fund holds the contributions in trust for the members and invests the contributions to increase its value, and use it to provide benefits to members when they retire.

Australian can choose to contribute their personal superannuation contributions to a public offer superannuation fund, industry superannuation fund, employer sponsored superannuation fund or to a self managed superannuation fund.