Starting a career

Welcome to the working world

The start of your career can be both an exciting and daunting time. On the one hand you’ll be receiving a regular pay packet which means having spending money and real financial options. On the other hand, finding the right job and adjusting to the working world can be challenging.

Getting the job you really want

It's not usually easy to land the job you want. If you want it because it's a good job, then lots of other people will want it too. And when it's a competitive environment, there are plenty of things you can do to give yourself the best possible chance.

Check out specialist industry publications: Not only will you get to know all the latest about what's going on in the industry, but you'll also learn about the 'big players' and key companies to contact. Plus there should be plenty of ads for jobs to help you with the search.

Register with a recruitment agency (or 2, 3 or 4): A good recruiter will have contacts with every decent firm and will know who's looking.

Volunteer for work placement: Unpaid work experience can be a great way into a full time job. You'll look really keen, you'll get to meet people who can help you and if you impress them enough they'll do their best to keep you on or get you in the door elsewhere.

Network: Attend conferences and industry seminars, get talking to industry people, be brave and cold call companies.

The interview

• Be prepared for questions ahead of time. What are your strengths and weaknesses? How do you think you can add value to their organisation?
• Learn about the company so you can ask them some relevant questions.
• Get there early and dress appropriately.
• Consider your career path and how this position will help you get there.
• If a question makes you feel uncomfortable, ask for clarification or for the interviewer to explain its relevance to the position.

 

Tax and super: how much will you pay?

The amount of tax you pay is a major consideration from the day you get your first pay slip. The type of job you do will have a big influence on the things you can claim and the amount you pay. Being self-employed will also have an impact on the way you pay tax and the way you manage your finances.

Another thing that will chip into your pay packet is your superannuation. You can choose to contribute as much as you want, but the minimum contribution is 9% of your income, which is paid directly by your employer and generally you can't access this money until you retire. Following recent law changes, you have the freedom to pick the fund of your choice, as well as where the fund invests your money. This gives you input into its performance.

What's a Tax File Number?

Tax File Numbers are issued by the Australian Taxation Office so they can keep track of your tax records. As numbers go, this one's pretty important. You need to quote your Tax File Number quite a bit. While you don't have to quote your tax file number, if you don't, you could lose out on all sorts of tax breaks and benefits. For starters:

1. Your employer would automatically have to take tax at the highest marginal rate from your wages, which may be much more than you're meant to pay.
2. The same is true for banks where you have interest-bearing accounts. Any interest you earn would have to be taxed at the highest rate.
3. Centrelink generally won't pay you an allowance, such as the Newstart Allowance, while you're looking for work.
4. You won't be able to join a superannuation fund or find lost funds.

 

Super facts: 5 tips for choosing the right super

1. Learn the fees and costs

You need to keep fees and costs down to a minimum. Over 30 years, even a difference of 1% between funds could mean you have thousands less when you retire.

2. What about investment performance?

Unless you have a crystal ball it's impossible to know how well a fund will perform in the future. But, chances are if it's got a good track record, you're less likely to come unstuck.

3. Find out if your fund offers insurance

Some funds will offer you cover for various situations, like if you're too sick to work. Shop around, check about medicals and waiting periods and compare costs.

4. Can you choose where your super will be invested?

Some funds allow you to take an active role by asking you about what level of 'risk' you're comfortable with.

5. What's the follow-up service like?

Is there a useful web site or a helpline, and will you get regular statements?

Find and consolidate your existing super

You might not think you've got much super, but if you've ever worked casually, there might be some super funds floating around with different companies. Try and move them to just one spot. For a start, you'll only pay one set of fees and you'll be able to track it. Try the Australian Taxation Office's free SuperSeeker tool which instantly provides possible matches for lost super using your tax file number, name and date of birth.

How to ask for a pay rise

Asking your boss for a pay rise can be nerve wracking but it's an essential part of your working life and when the time comes, there are tactical steps you can take to ensure you get the best outcome.

By ensuring you have a clear understanding of your employer's expectations, and that they have a clear and accountable record of your expectations, this process can be made easier.

Here are some tips to help you get a pay rise:

• Think it through. You're far more likely to be successful if you've worked out why you're worth more money. Make a list of your current responsibilities, achievements, workload and all the positive aspects you have brought to the job.
• Ask for extra work and responsibility and link this to a pay rise. Suggest a review in three months time, once you've had a chance to prove yourself.
• Be clear about what you want. Don't waste your boss's time; get straight to the point and be confident and pleasant.
• Ask for an annual salary review. Most companies give performance reviews, so check if they're linked to a salary review, too.
• Know what rival companies are paying. The more detailed you can be, the better. If you've done your research most companies find it a pretty persuasive argument.
• Be prepared to negotiate. You might not get everything you ask for first time round, so think about haggling a bit.

 

Looking after your money

Once you’re earning a salary, it’s important to make sure you have your banking organised. Many employers will pay you with a direct debit into your account, so you will need to organise a bank account if you don’t already have one. It’s also worthwhile signing up for internet banking which offers you the convenience and flexibility to manage your finances wherever you have an internet connection, including your phone.