• yourtax101

Superannuation Basics Australia 2019

Updated: Oct 9, 2019


Superannuation Basics 2018

​When you start work in Australia as an employee most people are entitled to have their employer pay superannuation on their behalf. Generally, you’re entitled to super guarantee contributions from an employer if you are 18 years old or over and are paid $450 or more (before tax) in a month. It doesn’t matter whether you’re full time, part time or casual, or if you’re a temporary resident of Australia.

As an employee, you should provide your employer with your tax file number and your selected superannuation fund membership details. You are entitled to compulsory super contributions from your employer at a rate of at least 9.5% of your ordinary earnings, up to the ‘maximum contribution base’.

If you are under 18, you must meet the above conditions and work more than 30 hours per week to be entitled to super contributions.

Your employer is not required to make super contributions if you are:

  • paid to do work of a private or domestic nature for 30 hours or less each week

  • a non-Australian resident and you’re paid to do work outside Australia

  • an Australian resident paid by a non-resident employer for work done outside Australia

  • a senior foreign executive on a certain class of visa

  • temporarily working in Australia for an overseas employer and are covered by the super provisions of a bilateral social security agreement.

Choosing a Superannuation Fund

If you are eligible you will be able to select the superannuation fund you want your employer to pay your superannuation contributions into.

When you commence employment your employer should give you a ‘Superannuation Standard Choice Form’ to complete or you can download it from the Australian Tax Office website. If you do not choose a super fund, your employer will choose one for you.

You’re generally eligible to choose a super fund for your super guarantee contributions if:

your super is paid under a federal award or a former state award

you’re employed under another award or agreement that doesn’t require super support, or

you’re not employed under any award or industrial agreement (including contractors paid principally for their labour).

You’re not eligible to choose the super fund you want your super guarantee contributions paid into if:

your super is paid under a state award or industrial agreement

your super is paid under certain workplace agreements, including some Australian workplace agreements (AWA)

you’re a federal or state public sector employee, excluded from super choice by law or regulations

you’re in a particular type of defined benefit fund or have already reached a certain level of benefit in that super fund.


Too Many Superannuation Fund Accounts


copyright© 2019 I Your Tax Matters