What is a Australian superannuation fund?

So what is an Australian superannuation fund? Some things are rightly described as ‘Super’. For instance, no one can argue against Superman deserving such a title. However, the term is also abused for mediocre objects simply for a good effect. Find anyone who actually enjoys a trip to a ‘supermarket’ and they are either lying through their teeth or they barely ever leave the house. Blueberries are a “superfood”? Seriously? While Superannuation will not save the world like the Man of Steel, you are much better off with it than without it when working in Australia.

Ok. Declaring itself as super is a tad outlandish, as superannuation is a pension arrangement. Yup. That’s not even barely stirring,g is it, let alone super. However, in Australia, this is government-supported, which also means that minimum provisions are enforced for employees, which is kinda nice.

What is an Australian superannuation fund??

By law, employers must contribute at least 9.5% of an employee’s ordinary time earnings into a superannuation fund, known as the ‘Superannuation Guarantee’. The key detail is that this contribution is an additional payment your employer makes—it doesn’t come out of your gross pay. There are also plans to increase the proportion to 12% by 2019, which is nice.

Your payment depends on your pre-tax earnings. For example, if you earned $500 before tax in a month, you should receive an additional $46.25. However, don’t worry if your superannuation balance seems low. The Australian Tax Office (ATO) taxes 15% of it, and your super fund also deducts weekly administration and insurance fees, which typically range from $5 to $10.

Are you eligible for superannuation?

To be eligible, the employee must be over 18, working over 30 hours a week and earning over $450 per month from one employer, so it would be beneficial to hold a single job instead of several. The Australian Government covers assurances as well. From 1st January 2014, it obligated employers to pay default contributions to an authorised MySuper product, with AustralianSuper and AustSafe Super being the most well-known. This means that losing your payment due to a suspect provider is now far less of a risk.

How does Superannuation affect temporary residents and working holiday makers?

That all sounds grand and all for Australian citizens, yet short-term visitors such as those on Working Holiday Visas, the reality is a little different. Of course, if you meet the criteria, then you can expect the contribution. Remember, as long as you earn over $450 a month from one employer, you will be entitled. The arrangement is for any worker, whether permanent or casual, resident or non-resident for tax purposes (that would be you, by the way).

What is an Australian superannuation fund? How do you arrange

Arranging your superannuation is relatively straightforward. You can set up your super account, which is the simpler choice if you intend to take on temporary work or travel while in Australia. You could also ask the bank to set up your superannuation when you open an account with them, or you can join the super account set up by the employer.  If you do opt for your employer’s superannuation account and lose the paperwork, do not fret; simply contact backpay.com, and they can help locate your super. For anyone being paid in cash, it may seem great to have your wages in your hands to hold and then spend, but you will be missing out on superannuation. You read that correctly. For all those lovely, crisp banknotes in your pocket, you will be losing out on FREE MONEY.

Claiming back your superannuation

Working holiday makers are allowed to claim back superannuation either when their visa expires or whenever they leave permanently. This is known as the Departing Australia Superannuation Payment or DASP. A point to note is that you must have left Australia before this can be paid; the application includes checking that any temporary visa has been cancelled by the Department of Immigration. Indeed, the Australian government must get really irked with these departures, as they then take out a further 35% when you apply for the withdrawal. A bit harsh.  Another point to note is that you are much better off claiming your super refund sooner rather than later. If you do not claim your super within six months of leaving Australia, or within six months of the cancellation or expiry of your visa, the ATO will claim the money, and it could be a while to organise its release from their tight grasp, especially from abroad.

The money is still yours. If you’re unsure how to claim it, don’t worry. If you’ve already claimed your taxback, the same company and even the same tax professional can likely help with your superannuation claim. Just provide your membership details, fill out a few forms, and let the tax professionals handle the rest. Most charge a flat fee of around 15% for the service. You should receive your super within 28 days after the Australian Tax Office receives your application.

<p>Superannuation may not exactly be super, but it is free money that you should be entitled to when working in Australia. Setting up your account is relatively simple, and claiming it back once your visa has expired is not that hard either. Just do not forget about it, it is free money after all.

By Omar Soliman

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