Highlights
- Employers are obliged to contribute 10% to your super if you are an eligible employee.
- The Australian Taxation Office (ATO) website is a good resource when it comes to setting up a superfund.
- Do you own research and compare superfunds.
Listen to audio
"If youre a student living in Australia for at least six months, you are considered as a resident for tax purposes. This means you have to pay taxes on all your income.
"If an employer pays below the limit of $450 a month, he doesn't have to pay you super."
Tax agent and accountant Cherry Dimapilis shares that even if your employer isn't paying you super, you can set up your own super fund.
"Having a superfund is beneficial. If you are an eligible employee, it is mandatory that your employer contributes 10% to your super," Cherry shares.
She says that super is a long-term investment and that the earlier you can manage your superfund, the better.
"The ATO has guidelines on how to manage your own superfund and the kind of super you can get (such as industry-related super).
Cherry says that it's important to do your own research and compare things such as annual yields, performance, fund charges and insurance covers.
"A superfund is like SSS in the Philippines. You deposit money into the fund and your money is invested into other financial products.
"Once you choose a superfund, you have to deposit regularly so your insurance doesn't lapse.
"Remember that if your balance is below $6,000, you lose insurance."
