Superannuation in Australia.

Welcome from Australia’s first and oldest bank, Westpac. We understand that a new beginning in a new country is a big decision. This is why we are excited and passionate about supporting you every step of the way. This simple video series covers some of the basics of living and banking in Australia we hope that you find it helpful.

Superannuation in Australia. In Australia superannuation is a large part of many people's long-term savings. Knowing what superannuation is and how it works could give you greater control and help you make more confident financial decisions about your future.

First of all, superannuation is commonly known as super in Australia. It is a compulsory system to help Australians achieve long term saving for their retirement. By law in Australia, if you are eighteen years old or over and are paid $450 or more before tax each month, your employer is required to make regular contributions to your super.

Superannuation is also a requirement if you are under eighteen years of age and work more than 30 hours per week. Compulsory super contributions are known as the superannuation guarantee. You can also choose to add extra money to your super yourself. Your superannuation guarantee payments will be placed into a superannuation fund of your choice. Your employer may recommend a fund for you but you can select your own fund.

It's common for super funds to incur management fees. For this reason, it's advisable to have only one super fund that you can take with you should you change employers. Having one Super Fund also makes it easier for you to keep track of your superannuation savings.

Your employer's contribution and any contributions you have added will be invested by your superannuation fund in a variety of assets like cash, fixed interest investments, shares or property. And if the fund earns annual investment earnings these will be added to your super balance.

Most superannuation funds will allow you to decide how your money is invested based on the level of risk you are prepared to take and the return you want to achieve. Super contributions could also offer tax advantages for some. So, it's a good idea to discuss this with your financial advisor, if you have one, or super fund representative.

As super is for your retirement savings, you generally cannot access your super until you are 60 unless you were born prior to 1 July 1964, in which case you'll be able to access it earlier. There are limited circumstances in which you may be able to access your super earlier. Such as if you become permanently disabled or are unable to continue work permanently.

Many superannuation funds will also include personal insurance cover which may cover things such as death or total permanent disability, or salary continuance. Once again, it's advisable to be aware of what insurances you have available to you in the Super Fund you belong to.

Super is an important part of long term financial planning to help you have the retirement lifestyle you want. So, contact Westpac today. We would be happy to discuss your needs further. We’re here to help.