When working and travelling in Australia, one term that will likely be new to you, is superannuation. But it is important to understand what it is and what you are legally eligible for.
What is Superannuation?
It is similar to a pension plan but in Australia they call it Superannuation. When working here, you will notice that you don’t often receive benefits or medical extras from your employer when working full-time and this is the same whether you are Australian or from overseas. BUT, you get super!
If you get paid more than $450/month by your employer, then legally they must pay a minimum of 9% of your salary into a superannuation fund. This is ON TOP of your salary and not something that comes out of your salary. Your employer will deposit this into your superannuation account likely on a quarterly or biannually basis. This means, they help you save nearly 10% without even realizing it!
When can I receive my Superannuation?
The good news is, that for many of you, you will be working and travelling on the Working Holiday visa, which means that once you decide to leave the country permanently, you can get your superannuation back right away. They government will tax it but you usually get about 70% of it back. If however you stay in Australia and end up becoming a Permanent Resident, then you won’t be able to get your superannuation back until you retire!
For more information on what the government has to say about superannuation, click ATO superannuation.