Pensions and superannuation in Australia

MOVE TO AUSTRALIA | What you need to know about the compulsory payment into a Superannuation retirement fund and the state pension, if you are moving to Australia.

Superannuation

Superannuation – often referred to as ‘super’ – is a retirement fund paid through employment-related contributions. It is similar to employee pension funds in the UK; however in Australia it is compulsory for every worker.

Employers must pay a minimum of 9% of every employee’s ordinary time earnings (salary and wages but not overtime) into the superannuation fund of the employee’s choice.

Some employers pay your salary and make an additional separate payment into a fund, but others can deduct the payment from your earnings directly. It is important you are aware which route is taken by your employer.

You are also allowed to pay additional voluntary contributions and often employers will match your contribution over the 9% compulsory minimum.

The Age Pension

When you have turned 65 years of age (and been a resident or citizen of Australia for at least 10 years), you are entitled to an Age Pension.

Currently, the Age Pension is worth $17,443 per annum for single persons and $26,296 per annum for couples, but supplements to these numbers are available for people requiring income support.

From July 2017, the qualifying age will increase to 65 years and 6 months, and increase by 6 months every 2 years, reaching 67 in July 2023.

Any awards of the Age Pension are subject to an asset and income test.

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