The opportunity to pay income tax in instalments, rather than once per year, was introduced in 1941.
Check what fund your super contributions will be paid into. In many jobs, your employer is required by law to allow you to choose either the employer's nominated fund or your own preferred super fund. They must give you a standard choice form to choose your fund.
Make sure your super fund is a complying fund, one which meets certain rules set by the government.
Make sure you include your tax file number (TFN) on your standard choice form.
When you start work, your employer will give you a tax file number declaration form to complete. Your employer will use the completed form to pass on your TFN to the super fund they pay your super into. It isn't compulsory for you to provide your TFN to your fund, but if you don't provide it:
- your fund is liable to pay extra income tax on contributions your employer makes for you (including salary sacrificed contributions) and may take this extra money out of your super account
- your fund must not accept any member contributions and you will miss out on super co-contributions even if you're otherwise eligible.
You can check if your super fund has your TFN by looking at the statements they send you. If your statements show that your TFN is not held by your fund, you should contact them.
The super fund needs to know this so that your super account receives the correct tax treatment and other benefits. This also makes it easier to keep track of your super over your lifetime.
Read the product disclosure statement (PDS) issued by a super fund to all new members. This lists all the features and benefits of the fund, and the fees and costs they charge.