The most common question I hear is what is Superannuation (Super)? Super is your pension scheme. I know what your thinking…. Why do I need a pension scheme on a Working Holiday Visa? I will never see that money again!
Well, what if I told you your employer contributes and you get to leave Australia with a nice little savings pot?
In Australia, it is mandatory for every company to contribute the equivalent of 9.5% of its employees’ wage to a pension scheme each month if they earn over $450 a month. This is not taken out of your wage it’s an add-on. If you are a temporary resident who works in Australia, you are entitled to receive a Superannuation guarantee from your employer and then withdraw it (minus tax) when you leave.
How do I set up a Super?
Most visa companies offer it as a perk that you need to get set up before you leave. However, there is no urgency to get a Super until you get a job.
It is also good to have your own scheme set up, one that you have researched and you know how to keep an eye on and understand the charges your fund incurs once you start earning.
Here are three ways to get a Super account:
- Your Company will provide one. Most employers will have a company they use and will give you a form to fill out the day you start, make sure before you fill out this form you research the company.
- Use a visa company. If you used a visa company package to obtain your visa they usually provide you with a Tax File Number and Super number a few days after you have notified them you have landed in Australia.
- Find your own Super company and set up your own account. Canstar offers some good advice on their comparison website.
Tip: Make sure when you apply for a Super you include your Tax File Number so that you are not taxed double what you should be. Also, your TFN will help you track down your Super if you lose your details.
When choosing your own Super, make sure to take the following things into account:
- Admin and fund management fees should be 0.05% of fees
- Competitive fees
- Good investment options
- A good long-term track record
- Insurance options
- What other services does the Superfund offer?
Don’t get too bogged down choosing your own Super. If you want to go with what the company offers, just make sure you keep an eye on and question your charges and you should be fine.
Once you have an account, you need to maintain and keep an eye on it:
- Provide your TFN so that you can track your Super accounts if they get lost or you end up with multiple ones.
- Sign up online with the Australian Tax Office (ATO) through myGov. Keep an eye on it. Make sure you are getting the right payments from your employer.
- Query all deductions until you understand what they are all for.
Use your personal email address not your work email to sign up, or change it now in case you need to access it in the future. - Set up a benefactor – it is a good proof of relationship and also great emergency contact information.
Tip: Before you leave Australia you may need to get certified documents from your Super. So make sure you ask them what documents you will need to claim your Super back and get them before you fly out of Australia.
Next, find out how Medicare applies to a holidaymaker.
In your next step, I have pulled all my research together for a quick read on how you can use Medicare to top up your prescriptions and keep yourself healthy while you’re in Australia.
Medicare is like the NHS in the UK, Medicare helps make healthcare affordable.
Departing Australia Superannuation Payment (DASP)
DASP is something everyone overlooks. Most people who do a Working Holiday Visa don’t know that when they leave they can take their Super with them.
Make sure you talk to your Super company about withdrawing your Super while you are still in Australia. It will get very complicated if you try to do it from home.
When your ready to get everything refunded click the next button on the right to follow my next step – How to get a DASP.
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