Small Business Tax Dictionary

Superannuation is a government-mandated retirement savings programme in Australia. Both employers and employees contribute to superannuation funds, which are invested to provide income in retirement. Employers are generally required to contribute a percentage of an employee's earnings to a superannuation fund, and individuals can make additional voluntary contributions. Understanding and managing superannuation is vital for both employers and employees, as it affects retirement planning, financial security, and tax obligations. Compliance with superannuation regulations supports responsible employment practices and contributes to long-term financial wellbeing.