Superannuation help

[sassykh]

Hello- I am moving to Australia early next year & will be relocating with my company. I am in the final throes of agreeing my package & relocation, but am confused regarding pension/superannuation. A the moment I pay in 'x' to my pension and my company match this plus 2%. When I have asked about the equivalent in Australia I have been told that I must pay 9% increasing to 12% super. Is it common to ask employers to contribute some of this/ or match what I contribute? Advice gratefully received.

[dazza9]

The way I understand it is your company pays 9% of the value of your basic salary into a super fund, therefore if you're on 100K a year they will put 9K on top of that into a super fund. I have heard this is going to increase to 12% at some point in the future but again I think that will come from your employer, not your salary.

[lebourvellec]

Yes works the opposite way in Australia - they will be paying 9%.

[Parley]

Most companies these days wrap it into the package when quoting a total amount,

so they will say $109K package in the above example, which includes the super contribution made by the employer on your behalf.

 

If the company allows it you should consider salary sacrificing an extra component out of your package before tax.

I normally match the contribution so put in an extra 9% as a salary sacrifice so total of 18%.

Obviously this depends on personal circumstances but if you can salary sacrifice it is worth doing as you are investing pre-tax dollars straight off your gross package.