What is superannuation? Here are the six things you need to know:
Superannuation (or super for short) is extra money that has to be given to you by your employer.
Most Australians with a job have to have a super account. In most cases, you have the right to choose which super fund you use. With Student Super, you can open an account before you start a new job, so you will be organised on your first day.
Then, every time you start a new job you give your super account details to your employer.
The idea behind super is to make sure that everybody has some money to live off when they retire. So, under normal circumstances, you aren't allowed to withdraw money until after 65.
Money in your super account is professionally invested in all types of assets like shares. So, in the short term, your balance can go up and down. Also, the money you make in your super account is eligible for special tax treatment, which makes it an attractive way to invest.
So, when do you get super? If you're aged 18 and over, it’s simple. Your boss has to pay you super. If you're under 18, your boss has to pay you super if you've worked over 30 hours in a week.
So, how much do you actually get? From 1 July 2024, it's 11.5% on top of your wages, so if you earn $800 in a month, you get an extra $92 in super. The government has scheduled it to go up to 12% from July 2025.
So, why is it important?
Its real money, and it's yours, so you should look after it.
It’s crazy but a lot of Australians don't. The government is holding billions of dollars in lost super accounts*. Small choices now, can make a massive difference to your future.
The big takeaway is to get your super organised – and that’s our mission at Student Super.
*See the ATO website for more information.
