Superannuation

    Superannuation

    Superannuation age increases from 65 to 70

    Superannuation, otherwise known as pension in Australia is the setup of funds for when you retire.  The age of retirement in Australia is currently 65.  It is set to rise to 70 from 2035.   The pension qualifying age will start rising by six months every two years, from 1 July 2025 from age 67 years to 70 years by 1 July 2035.  Anyone born after 1 January 1966 will not be able to apply for the age pension until 70.

     

    Salary inclusive or exclusive of superannuation

    Your employer by law will pay your super which is 9.5% of your gross wage. This will be paid into a superannuation fund for you. When negotiating a salary it is important to ask if the figure you have been offered is inclusive or exclusive of superannuation.

    Salary exclusive of super

    Salary inclusive of super

    If a company offer you $70,000 gross salary exclusive of superannuation the company will pay  $6650 (which is 9.5% of your wage) towards your superannuation making your gross pay $76,650. If a company offer you $70,000 gross salary inclusive of superannuation, your actual gross pay will be $70,000 minus $6650 totalling $63,350.

     

    Taking your superannuation with you when leaving Australia

    If you are living in Australia on a temporary visa (such as a 457) you can take your superannuation with you when you leave if you are not planning to return to Australia. Read our article on Taking your superannuation with you when leaving Oz.

    Once you are a permanent resident you cannot take your superannuation with you if you leave the country before retirement age.  You will only gain access to it when you are eligible (at the age of 65 – 70).

     

    For more information on this check out the Australian government site for superannuation and also the Australian Taxation Office site for more details on your super.

    *Disclaimer:  While all efforts are made to ensure information is factual on this site the Moving2Oz  team recommend checking the Australian Taxation site under Super as it is constantly changing and updating and it would be worth your while looking at it to verify information.

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