Superannuation in Australia
The superannuation system in Australia is compulsory, with employers required to contribute a minimum percentage of an employee’s ordinary time earnings into a superannuation fund. These contributions are invested in various assets, including stocks, bonds, and property, to grow over time. Employees can also make voluntary contributions to boost their retirement savings.
The Superannuation rates are below:
Timeline Rate
1 Jul 2024 to 30 Jun 2025 11.5%
1 Jul 2025 onwards 12%
For example, from 1 Jul 2025 onwards if your base salary is $120,000.00 then super contribution is 120,000*0.12 = $14,400 per annum. This is often disbursed by your employer monthly or quarterly.
Inside your super accounts, the super contributions are taxed at 15%.
For example, if your super contributions are $14,400, then the tax of 15% applies (14,400*0.15 = $2,160) leaving you with a net of 14,400 – 2,160 = $12,240
Any earnings in your superannuation is also taxed at 15%.
For example, Your super balances for the year have earned $2,000 income. The 15% tax on this earning is $300.
If your did not have positive earnings for the year (i.e. a loss) then there is no earnings tax applicable.
Applying for Superannuation in Australia
To apply for a superannuation account in Australia, you typically need to choose a super fund, fill out the necessary forms, and provide your tax file number (TFN) to your employer. It’s advisable to compare different super funds to find one that suits your financial goals and offers low fees and strong performance.
Australian Industry Super Funds
Industry super funds are not-for-profit superannuation funds that are collectively run by employers and unions for the benefit of their members. These funds often have lower fees and competitive returns compared to retail funds. Some well-known industry super funds include:
2. Hostplus
4. CBUS Super
5. HESTA
Top 10 Australian Super Funds
When considering the top super funds in Australia, factors such as performance, fees, insurance options, and member services are critical. Here are some of the top-rated super funds as of 2024:
1. AustralianSuper – Known for its strong performance and comprehensive services.
2. Hostplus – Popular for its low fees and high returns.
3. REST Industry Super – Offers solid returns and good member services.
4. CBUS Super – Favored by those in the construction and building industries.
5. HESTA – Highly rated for healthcare and community services workers.
6. UniSuper – Strong performance, particularly for those in the higher education sector.
7. Aware Super – Known for its ethical investment options.
8. Sunsuper – Merged with QSuper to form a significant player in the market.
9. QSuper – Offers competitive returns and low fees.
10. First State Super – Provides a range of investment options and solid performance.
Superannuation for temporary residents
Temporary visa holders in Australia are also entitled to superannuation. When leaving Australia, you can apply for a Departing Australia Superannuation Payment (DASP) to claim your superannuation contributions.
- Employer-sponsored work visa
- Graduate visas
- Maritime crew visa
- Temporary activity visa
- Temporary or seasonal work visa
- Student visa
- Working holiday visas