CNC FABS Posted April 13, 2016 Share Posted April 13, 2016 So I know what super is and the various companies that offer different schemes, just not how it actually works. Just about to sign contract with first job in Australia (within 1 week of arrival, Melbourne) So how does super then work. Will the new employer need details of the scheme I will join, or do I have a certain time to arrange one. Do they nominate one to start with. If none of the above, what happens to the super money until I sort it. Don't want to look dumb when they ask me ! and I start filling in forms etc. :smile: Link to comment Share on other sites More sharing options...
Ken Posted April 13, 2016 Share Posted April 13, 2016 Some (but not all) employers will have a default scheme that they'll enrol you in if you don't have a super scheme. The employer will need the scheme details before they have to make the first payment to your super fund. Some employers will do that monthly so any contributions made this month are paid over next month, while others merely meet the minimum legal requirement which is to pay the contributions quarterly (four weeks after the quarter end) so contributions for April, May and June are paid by 28th July. In the meantime the contributions stay in the employers bank account. PS check what your contract says about your pay and super. Some unscrupulous employers quote a rate that includes Super to make it sound like they're paying you more (which is just about legal if they spelled it out at the time but often they don't). Link to comment Share on other sites More sharing options...
VERYSTORMY Posted April 13, 2016 Share Posted April 13, 2016 The employer will have a scheme you can join. They will give you the forms and you just fill them in. Later, or earlier if you wish, you can research which fund you like the best and either change, or just give the details to the employer. You can transfer fund that have been paid into one, into the one of your choice when ever you wish. Most people in my experience initially just take what the employer offers and then does some research on that compared to what else is out there and then changes and transfers the money in the original to the new. You can now do this through My Gov Link to comment Share on other sites More sharing options...
CNC FABS Posted April 13, 2016 Author Share Posted April 13, 2016 Thanks all. It's a fairly large company with branches across the country. So not worried about being done over. Yes I have seen some quote an all in rate to make it look good. Link to comment Share on other sites More sharing options...
CNC FABS Posted April 20, 2016 Author Share Posted April 20, 2016 Looking at funds now !! How the hell do you choose. Looked at the MLC one as bank with nab, but terrible customer service reviews and fees a bit high it looks ? Link to comment Share on other sites More sharing options...
Diane Posted April 20, 2016 Share Posted April 20, 2016 Have a read here https://www.moneysmart.gov.au/superannuation-and-retirement/how-super-works/choosing-a-super-fund One thing to mention to everyone, as we near the end of the financial year here in Australia - don't just assume your employer is paying your super to your fund, just because they say they are. There are some unscrupulous employers our there who don't - I am a bookkeeper, I see these things! - so check your year end statement, if you have online access use it to check your fund, and if you find your Super has not been paid when it should be, you can report it to the ATO. They will then audit the company, and add on some interest and admin fees...but some companies still don't pay and at the moment, the ATO don't seem to chase very much! It drives me completely mad! Link to comment Share on other sites More sharing options...
CNC FABS Posted April 20, 2016 Author Share Posted April 20, 2016 Thanks for info. I'm looking more at ANZ, even though I bank with NAB. Fees look a lot better and fund performance is 'average'. Want to get it sorted before my contract starts 2nd May. Most things done now, 2 cars bought, kids in school, cards and drive license, job for me. Just permanent rental. Been to 2 opens, we were only ones to turn up, god Australians loved the 1970's (cork floor tiles in kitchen, dark brown pattern tiles all over, dishwasher with HUGE buttons. Don't even want to start on the 'freshly painted' interiors. My children could paint better).:twitcy: Link to comment Share on other sites More sharing options...
Ken Posted April 20, 2016 Share Posted April 20, 2016 Thanks for info. I'm looking more at ANZ, even though I bank with NAB. Fees look a lot better and fund performance is 'average'. Want to get it sorted before my contract starts 2nd May. Sorry to burden you with another issue but you also need to decide at the point you join the fund whether you want to take their life insurance or not (you can't add it later). Link to comment Share on other sites More sharing options...
CNC FABS Posted April 20, 2016 Author Share Posted April 20, 2016 I kept my life insurance from the UK (L&G) as they confirmed in writing is was still valid. £ 200 k cover life only, don't think I need more. Link to comment Share on other sites More sharing options...
DT55 Posted April 20, 2016 Share Posted April 20, 2016 Sorry to burden you with another issue but you also need to decide at the point you join the fund whether you want to take their life insurance or not (you can't add it later). When I joined Hesta I was able to apply and add my life cover later on Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted April 20, 2016 Share Posted April 20, 2016 Hello I think that Ken is referring to the default insurance cover which therefore means it is given with no underwriting. It is typically possible to apply at any time (age permitting) for life and total and permanent disability (TPD) cover with most super funds for high sum insured amounts (millions, sometimes unlimited) and income protection may also be available. However this is underwritten so for anyone with previous ailments/heath issues loadings on premiums, exclusions and worse case scenario declining of the application could occur therefore default cover being given without underwriting could be very valuable for some people. Andy Link to comment Share on other sites More sharing options...
Marisawright Posted April 21, 2016 Share Posted April 21, 2016 Thanks for info. I'm looking more at ANZ, even though I bank with NAB. Fees look a lot better and fund performance is 'average'. Have you looked at the industry funds? They are non-profit and therefore have lower fees. Of course you also have to look at performance, but many of the industry funds have excellent results. The industry funds were all set up for specific industries (e.g. the health industry, the construction industry etc), but nowadays anyone can join any of them. http://www.superratings.com.au/ I would not go with any of the bank funds, they are some of the worst performers. Don't assume that because a Super fund has a "big name", they're any good! Link to comment Share on other sites More sharing options...
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