Australia: How much Is My Net Salary? -Superannuation (Part 2)
There are two types of contributions to super:
- Concessional - employer contributions and contributions made under salary sacrifice arrangement. Contributions made before tax but are taxed in the super fund at 15%.
- Non-concessional - contributions made into super after being taxed. They are not subject to be taxed again when put into the super.
Do You Know. Your super money can be taxed in three stages: contributions (15%), investment earnings (depends on how it is managed. Same as mutual funds, the NAPVS shown is already net of fees, taxes etc.) and super benefits (super income stream live dividends from your super).
- You should also check the statements from your super fund regularly to be sure your employer is paying the correct amount into the right fund.
- If super has been paid into various employer-nominated funds, you'll end up with super in a number of accounts and will be paying a lot of fees and costs. To minimise such, it is usually better if these amounts are combined in one and before doing so, find out if a fund will charge you to close account with them and whether you'll lose any other benefits.
- Monitor your super account. The level of fees charged and the rate of return on your funds can make a very big difference to the amount built up in your super fund when you retire.
- Use your mygov account to see a list of all your super accounts, look for a lost super or request a transfer.
- Deciding when and how to take your superannuation is a complex decision as there are many tax and welfare implications. You can seek advice from a professional.
So if your contract says, salary will be $50,000 inclusive of super. It means your gross salary is $$45,662.10 ($50,000/1.095).
To know how much is the average salary, you can do your research here https://www.payscale.com/research/AU/Country=Australia/Salary by indicating your profession. So you'll have an idea on how to answer, "What are your salary requirements?" in an interview.
To know more about super, https://www.moneysmart.gov.au/superannuation-and-retirement/how-super-works/super-contributions
If you are familiar with mutual funds or VUL, I think superannuation works that way. VUL if you have an insurance component in your super account.
*All those in blue are linked to their respective websites. Click for more information.
Taxation in Australia
Maximising Your Return
How To Keep Your Records
Preparing Your Tax Return