Superannuation in Australia

Superannuation tax payments are best explained as a compulsory pension contribution. The current contribution is 9% of your gross salary. Most pay rates will be quoted exclusive of superannuation costs so expect to hear “the salary is AUD$XXX,XXX plus super” when speaking to recruitment consultants and potential employers. In these cases whatever salary you receive your employer will pay an additional superannuation cost on top. Ultimately at the end of the day, this means more money for you.

If you are aged between 18 and 70 and are paid AUD$450 or more in a calendar month, your employer should be making automatic superannuation contributions into a complying fund for you. You have the freedom to elect a super fund of your choice. There are many different super funds that offer a wide range of personal or group wealth management solutions (eg. fixed interest and floating rates). You may also be able to claim tax deductions for personal superannuation contributions.

All employees (including those on Working Holiday and Temporary Resident Visa's) are required to make superannuation contributions, which are only redeemable upon retirement (currently this is 70 years old in Australia).

Find out more information on superannuation in Australia here.

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