PeterDeng

I just got an offer from a Sydney Company. Their HR told me when i arrive in Sydney, i need to fill in some Super Form. What kind of information i need to provide there?

Seems i also need to select the fund that i will use my Super to invest in, right?
How do i know which fund is good?

What other selections i need to make for my Super Account? Want to get prepared before i go to HR to sign and fill in the form.

THanks

Wol

The vast majority of employees apparently just go along with the company's super provider, thinking they don't have a choice. This might not be the best idea and might allow substantial management fees to be collected. Do some research.

spottydog

I'd probably just go with the default fund first and then do your investigations after you get here since you can easily transfer your super to a different fund.

There are lots of options for super from the basic sold over the counter fund that Westpac branches offer to Self Managed Super funds that require some significant funds before they become viable but can have lots of sophisticated options.

With regard to the info they require to set a super account up it is generally only your usual personal details (name, address, dob etc.) plus your TFN

PeterDeng

Do you all choose to comtribute more into the Super from your own salalry in order to reduce the income tax?

Actually i am thinking to do so, but not sure about the Pros and Cons for this..

And if one day i decide to leave OZ, can i take my super out..

For normal Super Account, when can i use the money in teh acoount? 65 years old?

kellz

I don't know about the first bit but at the bottom of the email confirming my visa it had details about taking my super out. So it is possible.

quoll

Yes, salary sacrificed a lot of my own money into super over the years and am very grateful now that I did.

I think you cannot take it out of the country if you are a permanent resident and you must leave it until preservation age - varied according to the year you are born http://www.ato.gov.au/super/content....tent/48211.htm However, it appears that some people have managed to persuade the ATO that they are leaving Aus forever even though they have permanent resident status (not quite sure how they have done that) and they get access to their super but with the regular tax deducted from it which is higher than the tax they have to pay on it when it is super. I think you may be able to access the part that you have put into the super fund at any time you like, the employer contributions are the ones which are locked in.

EvannTel

Yes you can but.......

All contributions to super are taxed at 15%. Your employer by law has to pay in 9% on your behalf. The maximum you can contribute per annum is $25,000. So you can work if you can contribute and how much.
But also if you are in the 15% tax band then contibuting to super saves you nothing and might as well pay the income tax and invest it somewhere more flexible.

The $25,000 limit increases to $50K when you are 50 or 55 IIRC

llanfachreth

You can make non-concessional contributions too. No contributions tax on this. Cap of $150k pa

PeterDeng

Thanks all for your reply. But i am a little bit confused here. These are my questions.

1) 9% company Super Contributuon, tax rate is 15%, but this tax is paid by the gov, so for me, it is tax free, right?

2) If i make Concessional contribution from my salary, for example, the amount i pay is 12K into the Super. Do I need to pay the 15% tax of this 12K by myself or it is by the Gov as well?

3) If i do Non-concessional contribution. How the tax for that calculated? Do i pay or Gov pay?

EvannTel

Ok, unless I have misunderstood you, the Gov NEVER pay your tax for you!

1) Your employer must deposit 9% of your salary minimum into super. If they deposit $100 into super, then the ATO (taxman) takes $15 leaving you with $85 to invest. So no hip pocket cost I guess.

2) If you contribute $12K from pre income tax earnings, then like above when that $12K hits super, the ATO swipe 15% so no additional tax bills.

3) There is no tax. As you have made contributions to super from post tax earnings, there is no taxation on deposit.

PeterDeng

Thanks for your reply.

1) But it seems different from "Super contributions are taxed at 15%, but this is done direct to the Government by the super company - as far as your personal income tax is concerned they are tax-free. But this only applies up to a set limit which varies with age: over 55 you can put more in tax-free and yet more again at 60+. Any contributions over that limit have to be made out of income which has been taxed. The current concessional limit for under 50's is $25,000." This is from one of the Post in this forum. Does it say that Gov will pay 15% tax on super or i misunderstand?

2)Another Question on how to do employee contribution. Do i have to let the Company know when i join the company? or do i need to fill in some on line form to Super to make that happen.. Just want to know the procedures.

THanks

PeterDeng

Salary sacrificed super and Super Personal Contribution are the same thing?

If not, what are the difference.
And what is good for my as a empoyee.

KJCherokee

Salary sacrificed super - your employer takes out the super before calculating your taxable income, so your PAYG tax is on the gross less the super.

Personal contribution is an additional payment that you make out of your net (taxed) income - you will then get a tax refund after July 1st (or whenever you put in your tax return) for the tax paid on those contributions.

If you are an employee then salary sacrifice is the way to go.

KJCherokee

Hope that helps

PeterDeng

Now i got it. Thanks a lot. This is very helpful...