What is superannuation?
Superannuation is a tax-advantaged investment vehicle, which “holds” assets and generates income for your retirement. The super fund is merely the framework in which the investments sit. The investments can include: Australian and International Shares, Australian and International Bonds, Residential and Business Property and Cash.
If your monthly wage is more than $AU450 as a Working Holiday Visa holder in Australia, your employer must contribute an amount equal to 9% of your wage into a superannuation account for you. Australians generally cannot access these contributions until they reach retirement age. However, as a Working Holiday Visa holder in Australia you can, in most cases, access your contributions earlier, although the money will be taxed.
Superannuation is a long-term savings plan to provide income for your retirement. Most workers are covered by compulsory workplace superannuation, with their employers required to pay the equivalent of at least 9% of their wage into a complying superannuation fund. Some workers make additional personal contributions.
