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Super is one of the most important things you need to consider when you start working in Australia as your employer will need to know where to contribute your super guarantee payments.
Retirement may be the last thing on your mind when you're just starting your career or trying to get settled in Australia.
But there's no doubt that you're looking forward to a comfortable and enjoyable retirement – when after decades of working you'd savour the fruits of your labour.
In Australia, one of the most tax-effective ways people can save for an enjoyable and comfortable retirement is through superannuation or 'super' as it's more commonly known as.
Super is also one of the most important things you need to consider when you start working in Australia as your employer will need to know where to contribute your super guarantee payments.
What is superannuation guarantee?
As of 1 July 2023, the superannuation guarantee (often referred to as 'SG') payments – is the minimum amount required to be paid, either on your behalf by your employer, or by you if you're self-employed, into your chosen super fund at least every 3 months. Currently this minimum SG amount is equal to 11 per cent of your salary. When you get a job offer, it's important that you check the superannuation component of your employment package as some employers make super contributions on top of the base salary while others offer it as part of the overall package.
Here are two examples to illustrate this:
- If your salary specifies that it does not include super, this means that the amount that your employer must contribute is on top of your ordinary time earnings. You might see this referred to as your salary 'plus super' or 'excluding super'. So, if your ordinary time earnings are $65,000 per year, your employer must contribute an extra $7,150 to your super as SG.
- If your salary package is inclusive of super, this can be described as your salary 'including super'. That means that if you're earning $65,000 including super, your ordinary time earnings are $58,558.55 and your employer is contributing $6,441.45 to your superannuation.
How does it work and are you eligible for super?
In Australia, super is mainly paid for or contributed by employers. This means that once you are hired – even for a temporary or casual role – your employer is required by law to contribute to your nominated superannuation fund.
Currently, whether you're doing full time, part-time or casual work, your employer must contribute to your super fund for you if you are:
- 18 years old or over, regardless of how much they are paid
- under 18 years old, and work more than 30 hours in a week.
Keeping track of your super
It's important to check your payslips to ensure your employer is paying you the correct amount of SG into your chosen super fund at least every 3 months. You can easily keep an eye on your SG payments in Internet Banking or the ANZ App if you have your super with ANZ Smart Choice Super and have registered for internet banking.
The earlier you get started saving for your retirement with a performing, low-cost super fund, the better chance you have of enjoying your ideal retirement.
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