Superannuation (or “super" as it is more commonly known) is the term used in Australia to deal with pension funds, or “401s". Like all such schemes, it is a form of compulsory saving.
Employers are also required to make Superannuation contributions to all employees, whether they are temporary or permanent. The minimum Superannuation contribution to be made by an employer is currently 9% of the employees gross salary, but many doctors are entitled to 12.5%, and some positions even more. This is a powerful way to progress your retirement income.
If you are coming to Australia on a Temporary Working Visa, upon leaving Australia you are usually eligible to retrieve these funds depending on the class of Visa.
At first glance Australian taxation rates may seem high in comparison to some other countries but keep in mind that there are significant deductions available for most professionals. An example of this is ‘Salary Packaging’, which is a tax minimisation strategy available to all public hospital and not for profit private hospital employees in Australia. Most overseas trained doctors will be eligible for salary packaging.
When working in Australia, it is important to get professional advice from international tax experts to ensure you are not paying tax twice (in two countries)
Every Australian resident (both permanent and temporary) who earns income must pay tax, and in order to do this must obtain a Tax File Number (TFN). We recommend that you apply for your TFN prior to, or as soon after your, arrival in Australia. Some third party service providers can assist you with tax planning, asset protection, and other matters.
The Australian financial year is from 1 July to 30 June. By 31 October each year, all Australian taxpayers must submit a tax return.
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