Superannuation is a legal requirement in Australia where employees must be paid 9.5% of their salary into a Superannuation fund that they cannot access until they reach retirement age.

How is Superannuation Calculated?

When jobs are advertised, sometimes superannuation (aka Super) is included as part of the overall package and sometimes it’s in addition to a base salary.

E.g. if the call centre base salary was advertised ex Superannuation for $100,000, an additional 9.5% ($9,500) must be paid into Superannuation so the employees total employment package is $109,500.

Unfortunately, there have been reports of some unscrupulous operators out there that may try and avoid paying Superannuation to employees.

It’s illegal and you should steer well clear of any organisation that isn’t paying it.

If you find yourself in a situation where your employee is not paying Supernniation you can report it directly to the Australian Taxation Office (ATO) here.

If you’d like to learn more about how Superannuation works visit the Australian Tax office website >

What about New Zealand?

The New Zealand equivalent is known as Kiwi Saver however it operates quite differently.

Employees have the option to opt-in to the program and if they do, they have to contribute either 3%, 4%, 6%, 8% or 10% of their before-tax pay.

The main benefit is if they do opt-in, their employee must also contribute 3%.

You can learn more about on the KiwiSaver website >


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