Lane Banks

Everything in this world should meet halfway in order to maintain harmonious relationships among people and achieve fruitful results. Employees play an important role in the country because every business runs smoothly with the help of these people. This is the reason why laws and policies were formulated by the government to protect the employees, guarantee them a secured future and bring back the contributions they make to the country. Among these laws is the superannuation, a pension scheme implemented in Australia.

Superannuation is made compulsory by the law where the employer is given the responsibility to direct nine percent of the wage of their employees to superannuation fund which can be accessed when they reach the age of retirement. These contributions are made at least every three months and the money is invested during the working years of the employee and is given back to the employee during retirement. In this way, even though the workers can no longer work for themselves, there will still be something for them to use for their basic needs.

In 2005, there are modifications made in the law behind superannuation funds that already allows the employees to change their current fund, consolidate it with other superannuation accounts and switch to another fund that of their choice.