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Tag: superannuation

What is Superannuation?

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.

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Teacher Salary Benefits in Australia

Teaching in Ontario (Canada) is brilliant for a number of reasons; the pension’s reputedly one of the best in the world, and the teacher salary benefits: massage, dental, optometry, even orthopedics! — are something to write home about.

But of course traveling the world is kind of amazing…and a developing–or feeding, for some!–your sense of adventure is exactly the reason you’re leaving home.

Australia does not offer employee benefits.  It’s not really a big deal, since most people only come over here for the year–you can probably organize your dental and contact lenses before moving to Australia–and if you are moving permanently, you have to accept the need for ‘extras’ medical insurance cover. It’s just one of those ‘culture shock’ differences.

The Good news:

Your Australian employer will automatically contribute 9% of your salary to your superannuation fund. And another 9% of your salary will be deducted from your salary and invested into your super fund.

If you don’t plan on becoming a permanent resident, you can collect this money when you leave (as well as the tax you paid, by the way). Yahoo!

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