Superannuation is a financial scheme that enables a person to save money for their retirement. In Australia the importance of superannuation has been recognised since the 1980s. It is strictly regulated under federal law and industrial award schemes. The most important legislation is the Superannuation Industry (Supervision) Act 1993 (Cth) and its regulations. The Australian Prudential Regulation Authority (APRA) regulates the superannuation industry and there are serious consequences for non-compliance particularly for Self-Managed Super Funds (SMSF). There are many ways to resolve disputes related to superannuation. The Superannuation Complaints Tribunal is one organisation that resolves complaints against regulated superannuation funds.

Superannuation has numerous tax advantages, is an attractive investment option and offers people many ways to save up for their retirement. Superannuation is a complex area of law and there is limited awareness in the Australian community about associated rights and obligations. Superannuation terminology can be complicated and confusing to understand and it is therefore imperative for consumers to get expert legal and financial advice.

There are two main types of super funds. These are accumulated contribution funds and defined benefit funds. When a person retires they are usually entitled to withdraw their super balance as either a lump sum amount or under a pension scheme. The money in a super account comes from different sources including:

• employer contributions;
• salary sacrifice arrangements;
• personal contributions;
• government co-contributions; and
• profit from investments.

In Australia an employer is legally obligated to contribute to their employee’s super fund under a scheme called the super guarantee. There are many different types of investment strategies and each comes with different risks. Many people do not realise that their super benefit largely depends on how their fund invests the money and that the risk of investment is borne by the member and not the superannuation company. Superannuation funds also offer life and disability insurance policies within the scheme. These operate in a similar way to privately held insurance policies.

Many people also don’t realise that superannuation is considered property for the purposes of splitting assets in a breakdown of marriage or de facto relationship. Access to the superannuation benefits in these scenarios will be protected by superannuation laws.

Since superannuation is a long-term investment many people lose track of their super when they change jobs, move to a different location or forget to update their contact details with the super fund. In Australia there are billions of dollars in unclaimed super money held on trust by the government. The Australian Tax Office (ATO) maintains a ‘Lost Members Register’ (LMR) that lists details of lost members reported by a super fund. Members and beneficiaries can use a service called SuperSeeker to find the lost super.

This Legal Guide on Superannuation Law provides general information about the laws relevant to superannuation in Australia nationally and in some states and territories specifically. Before making important decisions it is advisable to obtain legal advice specific to your situation. LegalEagle’s™ free directory profiles all lawyers in Australia. You can use it to Find a Lawyer near you.

Please select from our Articles, FAQ and Questions & Answers sections all written by experienced lawyers. Our Glossary helps explain the meaning of any words you are unsure about. You can also Ask a Lawyer a question yourself. It is free and anonymous.

Warning: Information provided through LegalEagle™ is for general guidance. It is not legal advice. Laws and procedures referred to may change and differ between states, territories and nationally. There may also be important exceptions or qualifications. Only a lawyer providing formal legal advice can assess your particular circumstances to determine how the law will apply.