Entering the workforce means more responsibility and ultimately more money coming into your bank account. Set yourself up so that you know exactly where you money is going and how to make the most of it.
Step 1: Get a tax file number
You’ll need a tax file number (TFN) to give your employer alongside your bank details. If you earn under $18,200 in a financial year you won’t have to pay any tax and any tax your employer deducts will be refunded by the government once you lodge your tax return. If you earn more than $18,200 you will be charged tax at your marginal tax rate. If you don’t supply your employer with a TFN then you’ll be taxed at the highest marginal tax rate.
Step 2: Set up your super
If you’re over the age of 18 and earning more than $450 a month then your employer must pay at least 9.5% of your salary into a designated super account. You can choose your super fund based on your preferences and circumstance. If you end up with more than one super fund account it’s a good idea to consolidate them so that you avoid paying any extra administration fees.
Step 3: Check your payslip
Once you start getting paid, make sure you check your payslips so that you know everything is correct. Look at:
- Your wage
- The tax you’ve paid
- Super contributions made by your employer
- Your annual leave.
See more about checking your payslip.
Step 4: Start saving
Now that you’ve got money regularly coming into your bank account you want to get your savings going. Opening a separate savings account can help you avoid dipping into your savings from time to time. If you’re not sure about how much you should save each month the 50-30-20 guide can be a good start.