Your first job

 

Your first payday always feels good. Now you don’t have to rely on pocket money. You should receive a regular payslip from your employer giving the details of each salary payment.

 

Your salary can be paid in cash or by electronic transfer, where it is deposited directly into a bank account for you. Electronic transfer is now the most common method as it makes things easier for employers.

 

Wages and conditions of employment vary from state to state, and depending on your age and occupation. However, minimum government-legislated conditions apply to most employees.

 

Workplace ‘awards’ and ‘agreements’ between employers and workers, or their unions, also cover some industries, workplaces and jobs. These set out pay and conditions. You can ask your employer if an award or agreement applies to you.

 

Paying taxes

When you get your first pay, you’ll notice that the Australian Taxation Office (ATO) has also taken its cut. There may also be other deductions, such as union fees, superannuation or even payments you've arranged to go into a savings account.

 

Whenever you commence a new job you must complete a Tax File Number Declaration form. You do not have to provide a Tax File Number (TFN) if you are under 18 and earn less than $6,000 a year or receive certain Centrelink benefits. However, if you earn over $6,000 and do not quote a TFN, your employer must withhold 48.5% for tax from any salary payment – the highest marginal rate, plus Medicare levy. (Note: If you have two jobs you can only claim exemption from withholding tax on one.)

 

Download a Tax File Number Declaration form from the Australian Taxation Office website.

 

Superannuation

Superannuation is a compulsory savings program designed to ensure you have some money to live on when you retire. If you are aged 18 years and over, are employed full-time, part-time or casual, and earn over $450 gross per month, your employer must make contributions into your super fund (called the ‘Superannuation Guarantee’) at a rate of 9% of your wage. If you're self-employed, you can set up your own super fund or join an existing one.

 

When you join a company you’ll be asked to supply the account number of your superannuation fund, if you have one, or your employer will provide you with details and a prospectus of the company superannuation fund.

 

For more information on superannuation visit the Australian Taxation Office website.