The first point to be aware of is the general requirement on any employer to make superannuation contributions for all employees in receipt of a wage or salary at a minimum level, called the Superannuation Guarantee. A failure to pay at least the minimum required will expose the employer to the Super Guarantee Charge, which will include an interest charge. There are a limited number of exceptions to the Guarantee, including employees who are paid less than $450 in a month and employees aged less than 18 who are not working full-time.

The minimum level of support required is set at the following levels:

Financial Year	%
2000/01	8
2001/02	8
2002/03 onwards	9

Also note that a person who runs his or her own small business through a limited company is subject to the Super Guarantee provisions when remunerated by way of a salary.

In addition, note that salary does not include fringe benefits provided by the employer for the purpose of calculating the minimum contributions payable under the Super Guarantee.

Super contributions paid by an employer will be deductible for the purpose of computing the assessable income of the company up to a limit that is dependent on the age of the employee. Contact us for details.

Self-employed people are subject to different rules, particularly in as much as there is no compulsion to make pension contributions beyond basic prudence. Deductions for super contributions by the self employed are available, of an amount equal to the lesser of:

• $3,000 plus 75% of the excess over $3,000, and
• The upper limit, based on the taxpayer's age and published by the Australian Taxation Office each income year. Contact us for details.

If you are an individual migrating to Australia as a permanent resident you should also be aware of the desirability of transferring your pension from overseas into Australia within 6 months of becoming a tax resident (generally the date of arrival in Australia). This is because a pension transferred more than 6 months after becoming a resident will be subject to a tax charge that broadly treats the value of the fund transferred as assessable income in the year of the transfer. In addition a transfer of an overseas fund within 6 months of becoming tax resident will be treated as an undeducted pension contribution, allowing the pension income at retirement to be paid with no income tax charge in Australia.

As noted above, this is a complex area, but one that allows significant opportunities for tax and financial planning. We can provide general advice on these issues, and will be pleased to introduce you to those of our associates who are located in the area where you will be living, working, or setting up your business. Contact us for more information.

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