More money in your pay
While superannuation might not be an exciting subject, workers will be pleased the amount their employer pays into their fund has just increased.
Super up to 10%
The Superannuation Guarantee, commonly just referred to as ‘super’, is a compulsory payment by your employer to a fund set up for that purpose. An employee will have a personal account with that fund where the money is paid.
The amount that must be paid is fixed by law and on 1 July 2021 it went up to 10% of your wage. It is paid on all Ordinary Time Earnings, including piecework.
Some employers will pay this amount into your super fund every payday while others do so three monthly, but all are required to detail super entitlements on payslips every payday.
One important exception for super payments is for anyone who earns less than $450 in a calendar month – in that case superannuation is not required to be paid. That could be a part-time worker on low hours or a pieceworker on very low earnings. However, as this equates to less than 18 hours for a casual worker on minimum wages under the Horticulture Award over an entire month, it is likely to be a rare situation.
In some cases you can choose your own superannuation fund but in others the employer will nominate one for you, particularly if you are on a temporary working visa.
Generally the money can only be taken out on retirement or at a specific age – it exists to help fund the retirement of workers in Australia. Foreign workers who have accumulated funds while working in Australia can apply for a refund from the Australian Tax Office after leaving the country. It is called a Departing Australian Superannuation Payment (DASP).
If your employer does not pay this amount at all they are likely to be cheating you. If you have any concerns you should first speak to your employer to ensure it is not just a misunderstanding, but if you need to pursue the matter further the Australian Tax Office can help.