While all Australians get to enjoy the benefits of super, there are some differences between the states and territories. If you work and live in the same state your whole life, this probably won’t be a problem for you.
But for many people, whether due to family, job opportunities, or just simple wanderlust have been propelling you from one state to the next. During 2017-2018, 392,700 people moved from one state to the next, marking a 4.3 per cent uptick from interstate migrations during the previous year. For these nearly 400,000 people, it’s a good idea to understand some of the unique aspects of how super differs from one state to the next. Not only will this help you decide how to best utilise your super, but it can play a big factor during your retirement.
For most aspects, there isn’t much difference between contributing and accessing your super from one state to the next. No matter which state you work, the employer contribution rate will remain at a minimum of 9.5 per cent until it gradually rises between 2021 and 2025. The preservation age stays the same regardless of state as well.
However, there are also differences
This is especially true for public sector superannuation schemes, which can vary from one state to the next. This includes variations on compulsory superannuation rate increases and employer contributions.
Not all super differences revolve around state public servants. For instance, the superannuation splitting laws for married or formerly married couples does not apply to de facto couples in Western Australia. The superannuation splitting laws do apply for de facto relationships in other states and territories though.
In other instances, the unique considerations involve what super funds are available between states and jobs. If you’re moving from state to state to change jobs, you have the option to leave your funds in the existing superannuation fund. But if you’re moving and changing jobs regularly, you may end up with quite the collection of different funds.
If you’ve moved and this interstate migration has created a problem with you accessing your super, contact the expert super lawyers at Gerard Malouf & Partners to learn your rights.