AMERICA NEEDS TO STEAL THIS FROM AUSTRALIA! "Superannuation"

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[@nolasyeila6261]

I was made redundant at 62 - I was living in a rental that I could barely afford when I was working. I was looking at potential homelessness. I contacted my Super fund to see if I could withdraw some money to tide me over. As it turned out, my Super fund said I could withdraw the whole lot if I wanted to! So I did. I bought myself a villa - the first home I have owned. Then I did find myself a part-time job and so now getting some Super back into my fund until I reach retirement age and not having to watch all my money get swallowed by rent, don't have to worry about being out on the street, and have something to leave my kids. Hallelujah for Super.

[@wearefarm-ish4986]

I am lucky to have an EA that pays 15.4% supee and it will continue to rise with the percentage point rises the government has listed over the next few years ❤

[@ViridianFlow]

I'm getting 18.5% Super at 30. I'm happy that I can hopefully retire comfortably, but when rent is $2,800 a month where the mortgage for the same property is only $1,700 a month (but you can't buy unless you save up $100,000 for that 20% deposit) I still think the system needs some work. Hard to save that initial $100k when half your money goes to rent, a quarter to bills and you're already living fairly skint. (No car, walk to work, skip breakfast and lunch, drinking the coffee in the work break room etc) We really shouldn't allow rent to be anywhere near as high as it is. If your rent is higher than it'd cost to OWN the place you're living in if you just had that injection from the bank of mum and dad to cover the down payment, there's something wrong. That becomes a tax on the poor and those with abusive, dead or poor families.

[@BushTerrors]

@@wearefarm-ish4986 er, which sector is that?

[@sammitchell7909]

I worked at the RBA and moved over to APRA when it was established and the people from the then ISF (Insurance) that had to take calls from people like you were rotated constantly. The emotional strain from having to make calls Yes/No on early release of superannuation damaged them. I'm glad it was all good for you.

[@Alicia-ij6gt]

That’s really lovely. Glad you were able to use it for your long term security.

[@desleybettens5356]

I’m Australian & I firmly believe we live in paradise - whilst we do complain about our government at times, at the end of the day our governments do look after our people on many many ways.

[@antonyjh1234]

Your govt doesn't care anymore about you than they do global warming.

[@soundscape5650]

Nailed it, @desleybettens5356

[@riiidiculoso8697]

We do live in paradise. And I do remember those times, when we had a strong, proud national identity, and when our government was there to serve the best interests of the people.

[@antonyjh1234]

How's the water?@@riiidiculoso8697

[@ozgal6929]

We are all slaves to the C A B A L systems , but the great news is that it is all about to change in a huge way .. No more getting taxed in your job. No more banks stealing our money. A straight 14 percent tax on new items only , and no other taxes to be paid. Oh, and we will be getting all the taxes that were stolen from us given back to us. No more interest on mortgages. We will be getting all of that back too. It's about freedom and sovereignty. . Yippee

[@_zadbod]

Australian Here. I truly believe Australia is a great country to live in. My parents migrated in early 90s and I was born here. I feel as if Australia just picked the best things from all first world countries and implemented it. We're extremely fortunate here.

[@Kryojenix]

The early 90s? Why - that is exactly around when Treasurer/Prime Minister Paul Keating implemented compulsory superannuation!

[@slug.racing]

@@Kryojenix And what a wanker he turned out to be

[@Venusbabe66]

Umm... Not quite! Yes, Australia has implemented a few of the better systems, however, the nordic countries are currently the best at adapting best-practice systems in particular Finland, Norway and Denmark.

[@binaway]

@@Kryojenix Not. quite. At the time the Unions were demanding a wage rise. Inflation was already severe and Keating needed a way to satisfy the Unions wage rise demands without adding to the inflation problem. By implementing the compulsory Superannuation system it gave the wage rise the unions demanded without flooding the economy with extra spending. It made the later Howard government happy as it reduced the amount of funds required for a government old age pension. Many people now have to much super to qualify for a direct government paid pension.

[@daveamies5031]

"I feel as if Australia just picked the best things from all first world countries and implemented it" well Australia does do a bit of this, could do a lot more, but Australia is not the only country that does this, Our Super system was largely copied from Singapore's which was considered the best at the time, Singapore Has copied a lot from Australia too, and as another comment noted the the Nordic countries have a lot of good policies (some we copied some they copied). Make sure you thank your parents and let them know you appreciate the effort they went through to migrate here, it was harder to migrate to Australia in the '90's than it is now 👍

[@judileeming1589]

As a retiree, during the darkest days of the GFC Stock Market crash, I was glued to the television watching Market traders in AU/US discussing the daily movements of the Stock Markets. In one interview, a top American trader actually said that Australia’s superannuation scheme was the “envy of the World”! AND we have not had a recession since the early 90’s. That doesn’t mean there haven’t been inflationary periods that have required tight money management that caused mortgage stress, but the economy has been steady for so long, that the majority of people tend to prefer a long term outlook and are more risk adverse. Because of my age, and having no mortgage, I matched my employer’s contribution so my balance was okay for the short period I paid into Super. The funds stand at over AU$3-4 trillion which in 2022 made Australia as a nation the 4th largest holder of pension fund assets in the World. Not bad for a population of 26 Million.

[@seeshel63]

As a lagely single professional female, I couldn't afford to add extra super contributions. Most womens wages are still lower than mens. I have less than half the super of the average male aussie. Women over 60, renting, are the fastest growing category of poor in 🇦🇺. But single men seem to manage expenses in retirement.

[@judileeming1589]

@@seeshel63 I know a lot of younger people are understandably worried about the housing crisis and affordability so are living with their parents until they are older these days, luckily for a lot of them mum and dad’s house is larger than the shoe box I grew up in, and can accommodate them which if they are single could help in building their superannuation. Professional singles (like my eldest grandchildren) usually spend more time working than playing but it’s a shame that all those years of studying actually put them behind their friends who may have entered the work force earlier with less qualifications. Research scientists are not in the top salary brackets so their superannuation is always going to be more modest.

[@donnawilliams2805]

​@seeshel63 I'm a single, female in my 40s- my first boss sat me down at 21 and explained the importance of voluntary super contributions- my super is now at almost 500k... much much higher than my male friends of the same age in higher paying jobs

[@meeeka]

Best of all, Super can't be raided by the government or corporations.

[@Jackomac]

@@meeekalmao super is being used to corporatise housing now, your super fund will own a house before you do 😂, it’s straight up communism and people should be able to control their own money.

[@kazbah5672]

My friend was diagnosed with a terminal illness. She could get early access to her superannuation. It paid her rent, her funeral and some money for her daughter. Without Super, she would have had very little money. In her final months.

[@mrbaker1739]

Worked for 40 years. I paid 5% of my salary into superannuation. My employer added 14%. Retired at 60 with $1M AUD

[@donnawilliams2805]

That'll be me too! 🤞👍

[@BushTerrors]

Heading in a similar direction, except my employer pays 15.4%, and I chipped up from 5 to 10% personal contribution 5-6 years ago. Nearly 59, and planning on working to 62, taking all my remaining leave, and then officially retiring at 63. Will take most of my super as a pension. Yes we are lucky!

[@petermoller8337]

Did someone mention salary sacrifice? No income tax! (So that money going in is tax free!) And after we retire, tax free going out!

[@jamescochrane1310]

Not quite. salary sacrificing now gets taxed once at 15%. So not quite tax free.

[@aussiegruber86]

@@petermoller8337it’s not tax free, super is taxed at a lower margin

[@bhsaproduction]

Superannuation is like your 401K retirement fund system. In general employers are required to pay 12.5% of your annual salary into this "retirement" savings fund. The super funds are normally held by an independent investment firm (but you can manage your own funds). That way if your employer closes down or goes bankrupt - you don't lose your "super funds". This is regulated by the government, but the funds are yours. Any monies paid into the super account (by your employer or your "extra contributions") are generally taxed at 15% and not your normal payroll tax rates, which for most people ranges from 27% ~ 47.5%. The super funds are invested into property, shares, hedge funds, bonds and other forms of investment - but normally can't be accessed until you retire or reach the min age limit. (exceptions allowing access to some super funds include extreme financial hardship, extreme poor health matters).

[@Sycoinc]

added to this, its 12.5% on top of your pay ( eg a retail job could be 50k/year + super)

[@smalltime0]

the requirement for it to be held in an investment fund is relatively new, employers were able to have the default super fund for new employees set as an accumulation fund at a commercial bank which don't provide a return on investment. Especially for small businesses, this came with lucrative benefits for the employer, but meant the employer at the expense of the employee. This meant a lot of younger and seasonal workers effectively subsidised their employer's cost of doing business. Of course you could opt for a different fund, but those category of workers were less likely to know that.

[@Chris-yp1fe]

mandatory super payments are only 11% right now, increasing to 12% in 2025. if your employer is paying 12.5% that is voluntary, and not 'normal' unless you are in a government job who normally does pay above minimum

[@andrefischer5025]

@@Sycoinc employment contracts can be written in both ways $50k/year plus super OR $62.5k/ incl super. It is important to check before signing.

[@down7own7]

Because of the concessional tax rate on Super payments, it has become a popular means for tax minimisation for very high income earners. There are additional rules and taxes that try to prevent them from getting an unfair advantage. For example, there are limits to how much money that can be put into Super each year at the concessional 15% tax rate, and people making over (I think) $250k pay an extra 15% tax for super on amounts over a particular threshold so that they don't enjoy what would essentially be a 30% tax discount compared to the 15% everyone else gets.

[@ralphhillier676]

I am almost a century old, been, seen most of the world's conditions Came to Aussie from Canada in 1972 via N/Z-/UK citizen and Vet: Been all over the USA by car three times., I will not upset you with opinions that will hurt you. I watch you with a smile because I wish i could educate the American folk as to how they are being ripped off. it is disheartening really, my Wife and I have many relatives in USA, I will stop here and enjoy your programe with respect for your endeavour to educate the Folk in USA carefully" that they they are not the greatest or system. We both enjoy all free services you would die for. Respectfully /Ralph

[@mikevale3620]

Keep going Ralph...you're a champion.

[@jimmyriddle5246]

The services aren't "free". Who do you think funds them ?

[@integratedwaffle]

@@jimmyriddle5246 Relative to the person not paying out of pocket, yes it kinda is. I'm happy to pay taxes for services and healthcare that makes our society better. Otherwise we'd have a crappy free for all society. Also, countries who pay higher taxes are generally happier.

[@Mattb81]

Super is one of the best decisions ever made by the federal government. Im 42, have never contributed a cent to it, but already sitting on just over $400k. Even if I stop working now, I’d have about $1.6m at age 60 with average returns. There’s no way I’d save that if it was paid to me.

[@partymanau]

U do pay, look up how its done. It is pay rises that are directed to ur super instead of ur bank.

[@Mattb81]

@@partymanau Depends on your contract of employment or EBA. In our case, the SGC increases are paid in addition to the negotiated yearly wage increases. But the point I was making is that if I was paid 10% more, I’d have just spent that bit extra, leaving me with very little other than owning a house at retirement age. I might have saved & invested some, but I doubt anywhere near as much.

[@toddyoung913]

​@@partymanautrue but that is all directed into savings none of it is spent so contributes to your future financial security without you having to do anything also pay rises have been pretty flat globally in the west for the last decade so hasn't really hurt while the SG increased because most citizens in comparable countries were not getting higher pay rises anyway and our investment pool as a nation has dramatically increased meaning our foreign currency earnings have also increased as a lot of those funds are invested outside Australia.

[@mehere8038]

@@partymanau in reality we have one of the highest minimum wages in the world so it's unrealistic to think that we would have received that amount in our pay packet if not for super

[@PrincessGold1]

You earn it as part of you wage/salary so it works well if you able to be employed throughout those 40 yrs. Not so easy for some others, but fortunately we still have an aged care pension or partial pension + health benefits and extra pharmecuetical benefits for those people. Our Pharmecutical Benefits Scheme helps everyone. schem

[@marylooby2635]

Just another misconception that America is the greatest place in the world!

[@NPC-fl3gq]

The USA is a great place if you're relatively well off, but atrocious if you're not. Eg, if you can afford to live wherever you want, and choose a low crime area, then the USA is a more affordable place to live (assuming you're healthy), but if you're poor and stuck in Chicago and/or you're unwell... well say hello to a short painful life.

[@leosheppard8517]

lol - these muricons seem to think they are the centre of the universe 😊

[@okitoki1973]

A few things that wasn't mentioned - you can contribute to a total of $27500 and it would be taxed at 15% instead of over 32-37% - you can contribute up to $110k with after tax dollar and income from that would be tax free. - super profit during contribution phase is taxed at 15%. But once you are in pension phase (no longer working and contributing) profit from investment is tax free up to a certain balance - you can withdraw from super tax free once you reach certain age. Generally it's 60. Government pension kicks in at 67 but you have to meet asset and income test to qualify for it. - the comfortable income for retirement numbers are based on the pensioners owning a fully paid house and not renting. - super funds are not generally owned by banks. Funds money are held in a trust so it's generally protected and fund providers must meet strict government regulations. - employees have choice of investment options and they can choose their own providers. Fund options are similar to managed funds with different investment strategies from low return but stable funds to high return but risky funds. Low cost Index funds or ETF investments are also offered by some providers.

[@thepinkpony]

Dude I've never heard any Aussie say happy arvo? But I love your passion for all things OZ. Keep the faith

[@kennethdodemaide8678]

You can also pay part of your income into super if you want. You pay only 15%tax on what you put into super. Australians have over 3 trillion dollars in Super.

[@TwelveAccounting]

the earning of the super is also taxed at 15%

[@peter65zzfdfh]

@@TwelveAccounting Until you reach the pension phase > 60 at which point earnings inside super are tax free!

[@mehere8038]

3 trillion seems like a lot. Anyone know how much the US have in super for comparison?

[@tkps5079]

@mehere8038 It is alot. With super becoming large investors in Aussie cos. so influencing those businesses it's making CEOs uncomfortable when they claim their greed is for share​holders who have started questioning the profit at all costs when it affects the business employees. I won't see it but in future super will outright own most of them stopping them doing as they please.

[@singhsaab20237]

​@@mehere80384trillion now in Australian fund in american 5trillion. With saying 401k employee contribute themself salary contribution which is youe salary sacrifice. In Australia no salary sacrifice employer have to must pay 12% of your salary supper on top of the salary you contribute nothing get all your pay.

[@lisc7204]

This is thanks to the Labor parties of the passed bringing them in. Medicare; Super; the aged pension, which is currently around $1000/fortnight and they get things heavily subsidised like rego, scripts for meds, rates, utilities etc. Even the disability support pension and the national disability support scheme.

[@dianacasey6002]

It’s actually $1224.00 per fortnight and every quarter you get a subsidy which is around 400.00 extra.

[@judithstrachan9399]

Note: “scripts” is short for “prescriptions”, ie meds. As in, pay $7 for something that unsubsidised people might pay $150 for.

[@JulieLAgresta]

My husband l(24 years) Loves seeing our combined Super growing every day. He's like a kid in a Lolly shop how much he enjoys seeing it grow & the App was a game changer for his weekly entertainment Lol. But...all jokes aside very grateful to live In Australia ❤

[@smefour]

Our system in the US would be called Democratic Socialism (which it is), but in the US 'socialism' is a dirty word for all the wrong reasons :p

[@natmcknight8780]

I used to work at the ATO. Dealt with plenty of superannuation calls. It's definitely a process to get lost super back. If you're unsure definitely call them and be nice. Hated getting abused when things aren't my fault. 😅

[@Alicia-ij6gt]

I hear it’s hard if you don’t have proof of where you lived when you were contributing into the fund.

[@nirvanaa5556]

Superannuation amounts to compulsory savings made directly from your employer that you cannot access until you retire (except in extraordinary circumstances). You are provided with a annual statement. You can generally choose to take a lump sum, a pension or both on retirement.

[@antonyjh1234]

Love the bias of "contributions made by your employer" No, it's forced investing of the employee's wage and is put into things from the stock market to shopping centres. 25% is put into the local stock market and 25% foreign, and then places where people go when they have money, shopping centres, carparks etc.. if things fall over then all the private funds collapse. For people to have 12.5% of their working effort for 40ish years taken and expect things will be the same when they put it in and when they retire or for nothing to go wrong with the investing of the money in all that time...gee I can see how it worked when the world population doubled but most countries aren't replacing themselves anymore. I suppose that's why the percentage went up uh?

[@pamh]

@@antonyjh1234 No it's not actually. It is on top of the employee's wage.

[@Grumpy-sy7wr]

@@pamh But without the contribution, the wage could, and usually would be higher, by roughly that amount. Many employers even show super contributions as being part of your salary package.

[@antonyjh1234]

It's a part of what they are paid. It's not separate from it, they just aren't allowed to access it. @@pamh

[@peter65zzfdfh]

@@antonyjh1234 You can invest it in whatever you like, even just cash if you want. The only rules is basically that it can't be for your immediate benefit (eg, you can't use it to buy a car / house to live in before now. It's taxed way lower than money outside super and returns better returns that almost anyone gets outside super. The % went up because people are expected to live longer.

[@dutchroll]

Australian "superannuation" = USA "pension plan" or perhaps more accurately "401k" plan. But we have contributions and government protections which don't seem to exist in the USA.

[@ZootZinBootZ]

It feels more like Aussies mutually beneficial relationships with government, accrued wealth , public contributions & unity seems self sustaining and able to support a welfare system that functions fairly well..... the lucky country

[@privateuser5397]

It's more like privatized social security.

[@Alicia-ij6gt]

@@privateuser5397 Yes. It’s a capitalist system. But it’s government mandated and with tax concessions.

[@lynneclarke6265]

I read something about some American companies that went bust, abscond with the workers super money.

[@libbypeace68]

I really wish more Australians watched this type of content and realised just how fortunate we are. Of course no Government in any country is going to be loved, but geez we lucked out with so many aspects of how our government has seen fit to actually look out for its people. Ryan, love ya like a brother, but I do hate the way your government runs your country. Time and time again I learn different aspects of what your government provides for its people, and basically, they provide heartache. I wish you guys could have it like we do. Mostly because of the work/life balance that we have but you guys are made to work so hard for. You deserve so much more 🤗

[@gregneil612]

My partner and I have a SMSF. That means that we can invest in whatever shares or property that we want. While we are now both retired, while we were working, our employers paid into our SMSF.

[@gavinmcmahon915]

It's the employees' money in take home pay forgone. When it started for example, a 3% wage increase was paid as 1.5% in gross pay and 1.5% went into Super. This went on for years until Super got to a 9% contribution, since then the employers have had to stump up the money.

[@peter65zzfdfh]

The great thing about this was that it combats inflation, just giving everyone more money to spend *now* makes prices rise. Deferring it until they're retired is better for everyone, and as another plus it means there's a lot of cash to be invested, a big chunk of it in local infrastructure etc.

[@shaughnsimpson441]

Yeah exactly right. easy example is, your income is 100k, you taxable income is 91k and 9k into retirement savings. Its more than 9% now though)

[@shaughnsimpson441]

lol, thats what happens when I reply to a comment without watching the video haha, this was answered in the first 4 mins. 15 years in the super industry has me jumping to explain too much lol

[@SarahBanjoFrog]

Also depends how your employment contract is written, can be written as base pay plus super, or as total fixed remuneration.

[@jonathongellibrand3632]

​@@shaughnsimpson441 I won't complicate it with the olde defined benefit schemes run by the Commonwealth and State governments! I thank my lucky stars every fortnight when 66% of my final salary, indexed 6 monthly for LIFE goes into my account! That is why Telecom/Telstra had to be sold as even in 1987 there was almost 16 billion in unfunded super liabilities. Hence the reason they closed the DB schemes

[@noelleggett5368]

In many ways (and many would strongly disagree), Paul Keating was the architect of the modern Australian economy.

[@AustralianHistory-ip1tp]

And bob hawke

[@noelleggett5368]

@@AustralianHistory-ip1tp You’d have to say that. But I’d characterise Don Dunstan, Gough Whitlam, Bill Hayden as the architects of modern Australian society, Paul Keating as the architect of the modern Australian economy - and Bob Hawke as their Project Manager.

[@AustralianHistory-ip1tp]

@@noelleggett5368 Oh man, could you teach me about Bill Hayden. I just know him as Hawkeys foreign minister, and the guy who Hawke took over as leader of ALP

[@noelleggett5368]

@@AustralianHistory-ip1tp A former Ipswich cop, Brisbane-born Bill Hayden was Gough Whitlam’s Social Security minister. In 1973, he introduced the Single Mothers’ Pension and implemented Medibank, Australia’s first national health care system and the fore runner to Medicare. In 1975, he replaced Jim Cairns as treasurer and put together a reform budget to get the Australian economy back on track. It was Hayden’s budget that Malcolm Fraser refused to pass, which eventually led to the dismissal of the Whitlam government. After Fraser won the 1975 election, he passed Hayden’s budget almost unchanged. Hayden replaced Whitlam as opposition leader in 1977, and at the 1980 election, he brought Labor to within 11 seats of victory. While Opposition Leader, he reformed the structure of parliamentary Labor Party and the Shadow Cabinet, and set about preparing the program to restructure the Australian economy (float the dollar, tax reform, banking reform) and labour market when Labor returned to office. Hayden resigned as leader in favour of Hawke on the morning that PM Fraser went to the Governor-General to call an early election. Hayden quipped “a drover’s dog could lead the Labor Party to victory at the next election’. When Hawke became PM in 1983, he implemented the program of policies that Hayden had put together, with Paul Keating as Treasurer. The fiscal and banking systems were reformed, Medicare was introduced. As Foreign Minister, Hayden’s legacy was the establishment of a new, stronger relationship with Southeast Asia (particularly Vietnam and Cambodia), and the reform of our Foreign Aid policy. He became Governor-General just before Paul Keating took over as Prime Minister.

[@markwaters3050]

When compulsory superannuation was introduced, it wasn't simply an imposition upon the employer... workers forwent pay rises that they would have otherwise been entitled to. A side effect has become that employers are reticent to actually provide income adjusted pay-rises to this day, mainly due to the requirement to pay SGC!

[@Rhianna7]

Yep - it was negotiated by the trade union movement in Australia.

[@warpedweft9004]

Up to that point, it was mandatory that male government employees paid super, but not female. It didn't mean that male government employees earned more, because the super came out of their salary. My husband and I are both teachers and we earned the same pay, but his take home was less than mine because he had to pay super. I could have, but having a mortgage at 17% interest, we couldn't afford super for me as well. My husband took a career change at the time when the system changed, and at that point his super had to be changed from the old government pension scheme to an account based super. Biggest mistake we ever made, but it is what it is. We now live off our super, but are no better off than someone receiving social security, for which they've paid not a cent other than the same taxes everyone pays. If they've never worked, never paid taxes, they still get that same pension, so for all the compulsory super we've been forced to pay, we're actually no better off than someone who has no superannuation.

[@Chris-yp1fe]

@warpedweft9004 you may be no better off personily but the system is far better off because of it. You have paid for your own retirement instead of 'the tax payer'. Which means that tax money saved can be spent elsewhere instead of feeding you

[@warpedweft9004]

@@Chris-yp1fe and that is precisely the reason we did it. However, it is galling to know that those who have never contributed a cent to this country get a free handout that amounts to virtually the same income, and whinge non stop about it not being enough, while a significant chunk of our society insist on bad mouthing those who have done the right thing, calling them wealthy when in fact they are no better off than pensioners, with none of the subsidies that pensioners get.

[@warpedweft9004]

nor does it stop the government and others from trying to raid what little we have.

[@optimusvalerius8824]

@Ryan Was As an employer, it is compulsory to pay your eligible employees super guarantee (SG) at least 4 times a year. The minimum SG rate you must pay for each eligible employee is 11% of their ordinary time earnings (OTE). This is scheduled to progressively increase to 12% on 1 July 2025.

[@PH_1964]

Yes, I've just got a new job with 11% and some places have higher I believe.

[@peter65zzfdfh]

@@PH_1964 11% is the minimum, some government jobs pay extra, sometimes on the condition you also contribute extra.

[@grandy2875]

optimus, wasn't there some talk about making super payments coinside with ordinary pay periods, e.g. if employees are paid weekly then super payments would be weekly too?...or did that get knocked on the head?... wouldn't it be easier to pay weekly rather than trying to keep that amount of money separate from your ordinary operating account for a entire quarter,,, but I s'pose the paperwork would be a bit of headache...🥴 🙃🐨🇦🇺

[@peter65zzfdfh]

@@grandy2875 Scheduled to start 1 July 2026. They've got to give companies that make the payroll software time to update their systems.

[@alpharia]

Further in on 1 July 2025 (what is the start of each Financial Year in Australia) all Employers must pay not at minimum 4 times a year anymore, but everytime pay is given, be that weekly, fortnightly, or monthly due to every employer having to use electronic pay systems that all are linked to the Australian Tax Office systems (your version of the IRS) This then stops some companies (mostly the bigger ones) making money on the interest they accumulate by placing monies owed into short term trust accounts before they pay quarterly which technically is making a profit on the employees property (the Super funds) and is a breach of fiduciary duties. Super becomes part of the asset pool in a seperation/divorce though is a separate line item and depending on what ratio assets are divided (by courts or mutual agreement) the super is then what is called SPLIT but the super money is still not available to either of the couple until retirement age (or in exigent circumstances)

[@vek679]

Only happened because of the Labor government in 1992. Would never would’ve happen under a LNP government. Funnily enough It was frozen at 9.5% when the LNP were in government.

[@Reneesillycar74]

Ahh the good old days when Labor represented the working class 😂✌🏼

[@vek679]

@@Reneesillycar74 true, but they will still do more for the working class than the other mob

[@dianacasey6002]

@@vek679Sorry not anymore. I have always been a Labor supporter but I think we now have the Clayton Labor government. I’m voting green from now on.

[@EgoFeederz]

@@dianacasey6002 Now for a harsh lesson in reality, Labor, Liberals or the Greens all end up with the same result, the people getting screwed and why? they are just the ruling class that dont care about the rest of us.

[@tone4507]

@@dianacasey6002 Sensible.

[@jenniferharrison8915]

Yeah no spiders today, Happy Arvo Ryan! 😄 Super, paid holidays, % leave loading, long service leave, SICK LEAVE, 20 wks maternity leave, compassionate leave, paid overtime, meal allowances, bonuses, job stability! 👍 Come on downunder Ryan, the sun is always shining here (except during storms!) ♥️🇦🇺

[@noelineatterbury822]

Not all states have leave loading and you forgot the workers compensation scheme to support injured workers

[@jenniferharrison8915]

​​​​@@noelineatterbury822 But it it is 'possible' to have a job with this provision, and I'm trying to motivate him a little! Workers comp is in some cases a negative thing in Australia!

[@jenniferharrison8915]

​​​@@noelineatterbury822 America invented litigation for workplace Injuries, personal injuries, financial loss, etc, etc, etc they are all aware of what compensation means - good/bad! That is also usually run by a industry here!

[@dianacourt377]

Did you mention 4 weeks paid leave?

[@grahamejohn6847]

@@jenniferharrison8915 In Australia you don't have to litigate and pay greedy lawyers it's just a given

[@cruciothelight]

Being a government worker I get 15% super and it’s a huge relief to have

[@Marzipan_Rocks]

Wow! Minimum in New Zealand is 3% and we negotiated with our employer (semi government organisation) to get 6% (which we have to match), everyone i talk to is amazed we have that. 15% would be amazing. Do you have to put in that amount as well or just your employer pays?

[@SpeedfrkOne]

Commonwealth employees receive 15% super. State employees only get around 8%

[@rebekahsprlyan6982]

@@Marzipan_Rocksno when I was a federal employee I received 15% and was not required to make any contributions outside of that 😊

[@infin8ee]

For all the "freedom" talk of America's i think that overall we really have a better standard of living here. Our work/life balance is better and we still care about other people in our society (generally speaking) Just an opinion

[@atsridge]

I agree things are pretty good here. Freedom means different things to different people. For me, freedom is the ability to go to hospital and not go bankrupt, or to live my life without worrying about gun danger. I think work/life balance probably still needs improvement but we're definitely better protected as employees than those in the US.

[@daveamies5031]

While we don't rank as Highly as our cousins across the ditch on the Freedom House Freedom index, we are way above the UK who is also way above the USA, so we're not doing too badly, we're in good company with countries like Germany, Belgium, Portugal and Japan

[@infin8ee]

@@atsridge the gun thing is real. I hear people say "you can get killed by a knife " but someone can't indiscriminately attack a school or shopping centre and kill bunches of people . We're also rational about medical care. As you say we don't get bankrupted by needing to go to hospital. Of course being so far away from everywhere can be a pain but it's sometimes a blessing. I think the Australian laidback attitude is pretty cool too. I'm happy visiting the rest of the world and coming home to Oz.

[@mddawson1]

@@infin8ee Exactly, for example the 2017 Las Vegas shooter killed 60 and wounded 413 people from the safety of his hotel room, something not possible with a knife.

[@tianthee]

It boggles my mind that a simple kinder surprise is banned in the USA due to them being "a danger to children" but they're perfectly happy to implement 'ACTIVE SHOOTER DRILLS' at preschools. So much freedom...

[@tdhharris]

I remember Bush43 trying to bring this in and it was decried as privatising social security and got no where. IMO it is a much better system than relying on the age pension on Aus or trusting that social security will still be around in the US.

[@rhondacohen9377]

Son I’m glad we don’t live in the land of the free and the land of the brave, you have to be brave to live there.

[@Nicholas1994]

I'd be interested to see a few videos where you explain some things about U.S. stuff, like what exactly is a '401k' (how does it work), how the education system works, how the political system works and how voting works. Maybe also how renting, bills, and buying property work.

[@valsyaranamual6853]

Easy. Seems like none of that works. At least not for the people of America.

[@georgiageller7921]

Totally agree!

[@RussellJones1961]

The video didn’t even mention tax. There is zero tax paid on the employer contributions, and only 15% paid on the investment returns while you’re contributing - that’s less than half the normal tax rate. It’s the most tax effective investment you can make. The only drawback is that you cannot withdraw anything until you retire, but that’s the whole point of the system!

[@donnapalaussie19]

Hey Ryan, Once someone has reached 60 they can take part or all of their superannuation if they want but if they take all, they must be “retired” and will need to live off of it until they reach government pension age 67 (as of writing this) if they don’t have enough funds remaining in their superannuation fund.

[@terrilee68]

I didn’t realise other countries didn’t have the same set up as us here in Australia We are extremely fortunate with this system I watched to the end 😃

[@acewickhamyoshi8330]

Actually because of ccovid & scomo telling everyone to cash in their super to buy a house , american president trump received $7 billion in super, as aussie super is ombined at $ 800 trillion , we all complained to the senate about that , it was trumps idea for australia to go cashless & close the bank branches down, slowly making australia relient on america

[@antonyjh1234]

it's forced investing in things that directly ruin the planet, how is that fortunate? They compete directly against australians for housing, how is your own money being used in the same market you buy things, how is a super fund owning things like toll roads or any business where they drive up prices, using your money, fortunate?

[@annalau9645]

I realised this when I went to work in Canada in health. No super at all.

[@t2force212]

We are the only country that has this, it's funny because all financial advisors on KZbin will advise people to put 10% of their income into a retirement fund and in australia its mandatory

[@sotrue2976]

I hope you vote Labor as Paul Keating introduced superannuation as prime minister

[@camf7522]

Common, you know that American’s would call this form of superannuation as ‘communism’ or ‘socialism’……sadly it will never happen for Americans. This system is in addition to social security in Australia, you can get the government old age pension and have super depending on its value and your other financial assets.

[@infin8ee]

Yeah they really hate anything that might be considered "socialism" hence their medical/ health problems. They rather look after the rich and big companies

[@valsyaranamual6853]

Americans think that socialism and communism are one and the same.Socialism is looking after the citizens.

[@sharonlanteri2537]

😊 keep pumping out these videos Ryan. I'm embarrassed to say that I was born in the UK and moved to Australia in 1972 and I find a lot of your videos informative. A lot of the info you report on I don't know about. E.g. superannuation. I know my employer puts money in my super account, I know I can personally add to that if i like (called 'topping up' your super) and that's about all I knew. I'm now an expert😂👍👍

[@AndyK8623]

Put as much info super as you can. If your employer provides the ability, salary sacrifice into your/a super fund - contributes from your gross salary (so contributions only taxed at 15%), rather than your after-tax salary (ie after PAYG).

[@Alicia-ij6gt]

@@AndyK8623 the total you can add to your super fund each year without paying a penalty is now $27,500. So, if your income is $80k, the super guarantee is already adding $8.8k each year. You can then salary sacrifice up to an average $1,550 per month if your employer allows it and that will reduce the tax you pay by 32% (your marginal tax rate plus the 2% Medicare levy) of that, so your monthly take home pay reduces by at most $1,054, not $1,550. That’s of course only if you can afford that sort of massive cut, but any amount helps. That $1,550 translates to $1,317.50 in your super, and its earnings are taxed at 15%, not 32%.

[@gordowg1wg145]

Just got my "Gold card" in NZ,very much a similar setup - with two tiers. There's the base 'super' which is ~US$310 a week, after tax, etc. and is not means tested (ie, you could earn millions and still get it), and a "Kiwi Saver", where one has the option of also putting part of one's earning into a fund with one's employer also adding to it. For me, I have a paid off house, reasonable savings, etc, and I can comfortably live off the "Super" while actually adding to my savings. Some people are much less fortunate, though, and there are other government policies to help those who cannot cover their basic living costs - especially as accomodation costs are skyrocketing if one has to rent!

[@TheBlackRobyn]

Lol I watched to the end, I’ve worked in Super for 24 years so wanted to see what this video said! It’s pretty accurate, some things are a little out of date but it captures the main points. Super is similar to your 401k but better. It’s essentially compulsory savings with contributions from your employer, and it’s up to you whether you also contribute or not, there are tax strategies that can apply if you do. Super also usually has cheap life and disability insurance too and you cannot withdraw your super until retirement age usually 65 or in exceptional circumstances which it is hard to get approved for. Ironically, I work for a large American company called Mercer - they are in financial service/wealth management but their main lines of business in Australia are in Super.

[@peter65zzfdfh]

You can withdraw some your super from age 60 if still working and all of it, provided you're not working. Once you're 65 you can access all of it with no restrictions, even if still working. You won't get a government pension until 67 though (provided you still don't have too many investments / cash).

[@PaulMurrayCanberra]

"compulsory savings with contributions form your employer" means nothing. Your employer payes you a TEC - total employment cost. Their "contribution" is simply money that they are paying into a super fund rather than paying you. IOW, the rate at which you surrender your income and hand it over to the tender mercies of the finance industry is not 9%, it's closer to 20%.

[@DavidPola1961]

Its now 12.5% Particularly amongst Unionised industries , its banked over forty years for most people with interest. Industry Super Funds have been the best performers for many years , generally no exit fees once you reach 57 that was with my fund

[@peter65zzfdfh]

It's 11%, rising to 12% in July 2025 for most people (that's the requirement). It's not just banked with interest, it's invested in whatever you want. And anyone working today will have to wait until 60 to access it, pandemics etc aside. www.ato.gov.au/businesses-and-organisations/super-for-employers/paying-super-contributions/how-much-super-to-pay

[@OzGecko]

No, the mandatory amount went to 11% on 1 Jul 2023. See the table on screen at 6:20 in the video - it'll max out at 12% in 2025. There's of course nothing stopping employers paying above the minimum - my employer gives us 17% !!

[@peter65zzfdfh]

@@OzGecko There's mostly nothing stopping them, though for highly paid employees there is a cap beyond which you have to pay extra tax, if you're very very well paid and the employer pays extra you could hit that.

[@DavidPola1961]

CMFEU Members are being paid at 12.5% that's why i stated unionised areas

[@peter65zzfdfh]

@@DavidPola1961 Unionized industries are more than 12.5% these days. It's 11% for those that aren't. For anyone not turning 59 in the next few months you have to reach 60 to withdraw it, and will not have any withdrawal fees/taxes. It's invested in whatever you like more or less.

[@minhdoan8161]

You should move your family to Australia 🇦🇺 😊

[@meeeka]

But you can only immigrate until you are 45 years old. Come on down!

[@sharontorrington4621]

I'm Australian and believe we have a very good system, fire now. Who knows what tomorrow will bring in this strange new world. Take care and stay happy, you and yours.

[@greggiles7309]

New Zealand has Superannuation and A Kiwisaver scheme for our retirement benefit.

[@FionaEm]

I used to work for an industry (not-for-profit) super fund. It's important not just to check what returns super funds achieve, but how big their fees are. Some returns of retail (for profit) funds are significantly affected by fees.

[@jaydenstorace3218]

The super rate was meant to be much higher, but the following government froze it for years

[@jimspink2922]

The current rate according to my last pay slip is 11% as I understand it the rate will increase by .5% each year

[@user-ub2jk6ri4e]

The Insurance through your Super can make all the difference. I suffered an injury and had to stop working. I've been able to claim income protection and my TPD Insurance. Giving myself an OK yearly pension (my other half earns a decent salary so I do not need a huge pension), in the long term I should not reduce the principle amount (unless I take out any lump sum amounts) and overtime will be able to increase my pension. I am lucky that we do not have to worry about Mortgage payments so it means we will be able to save a lot each year and not change our lifestyle from when I also worked.

[@CrankyQuokka]

First, the sun is so bright due to our Aussie summer sneaking through 😂 It's basically a replacement or supplement for a government pension, depending on how much you have been able to accrue over time. I think Singapore was one of the first countries to have a system like this.

[@heatherfruin5050]

Singapore's super is guaranteed, ours isn't. if the world went pair shaped we'd lose most of it.

[@HGills]

It’s now 11% in Australia for the 23/24 tax year We can also make salary sacrifice which are pre-tax contributions from our salary to reduce personal tax to an annual limit of 27,500 so if you’re in a top tier tax bracket it’s great as Super only pays 15% tax. We get to choose the superfund we want to contribute to and within that superfund we can choose the spread of investment, theirs heaps of options. Once we reach 60 if we stop working we can access that super tax free or put it into a pension fund and any growth is also tax free. Once the value of your super (and other assets excluding your family home) fall below a particular level you then qualify for a government paid pension. Is this like a 401k in the US ?

[@gracegale522]

That's interesting when you mentioned who sent you this video clip because, I used to work in the Australian Eligible Rollover Fund and Supertrace under Colonial First State before it was taken over ny Commonwealth Bank of Australia Ange was one of our Team Leader who was our boss. These rolloverfunds were the holding funds for lost super. They invest the super until the owners finds them. We processed benefit payments and rollovers to other superannuation funds.

[@lesratcliffe8164]

In simple terms; After the 2nd World War, Australians like other countries were told to "Populate or Perish" this resulted in the Baby Boomer Generation. At the time the life expectancy of Australians was about 65-70 years. The Australian government offered everyone an age pension but as the life expectancy was relatively short, the pension debt for the government was small. Move ahead 50-60 years or so and the Baby Boomers were starting to retire and they also were living longer. The government in office realised that the pension debt was going to be enormous and so comulsory employer super contributions were introduced. The government also reviewed the pension system and decided to means test citizens applying for the pension. Basically if you have too much money or/and assets, you will not get a pension. You may qualify for a part pension depending on the assets you have (the family home doesn't count) This reduced the pension debt, but it was too late for many Baby Boomers. The result for many is that their income it a cocktail of their Super pension and the age pension. Presently a married couple receives just over $800/week on the pension and if they have no super, that's what they live on. Pension qualifying age used to be 60 years old, but over the years it has been ratcheted up and is currently 67 years old for people born in 1957. This was also another way for the government to reduce its pension debt burdon by trying to keep people employed longer.. A young person now with a working life of employer contributions ahead of them, will be in a better position when they retire than their grandparents were, especially if that young person also adds to the super fund with personal contributions. There is a lot that I haven't mentioned in regards additional payments for those who do not own a house and rent instead, to how the part pension reduces based on how much you have, until it gets to the cut off point - the line in the sand,

[@heatherfruin5050]

well explained. 😊

[@FredPilcher]

One of the very few brilliant ideas that Australia has come up with. It's wrong, though - it's not just money that your employer puts aside - you put some aside too. Retail funds are a scam. Their purpose is to make profit, not to profit investors.

[@suekaraiskos7104]

No i never could afford to put extra aside….many can’t

[@bobbrewer5182]

Industry funds are a scam, their only purpose is to make money for the corrupt union movement! Technically NONE of your superannuation money is from your employer, it’s a cut to your take-home pay that funds it. Your salary would be 10% higher if superannuation didn’t exist, so it’s actually taking a portion of today’s pay to fund the future.

[@bobbrewer5182]

@@suekaraiskos7104get a better paying job then, or cut your expenses. It’s not hard.

[@megan2878]

One of 'the few' brilliant ideas Australia has come up with?' Are you living under a rock?😂

[@jwnomad]

Except Chile came up with it

[@jaccilowe3842]

I retired a couple of years ago and ended up getting more 'salary' from my Super per week than my wages had been! It's great. This is on top of the normal Government Pension. Oh, and I get my pension from the UK from when I worked for the first 14 years of my career. Currently I can live to 92 without having to reverse mortgage the house! Regarding insurance; we were covered if we had to go into hospital or have extended sick time (I was off for 2 years once waiting for and then having surgery) - you still get paid something like 85% of your pay while off funded through your Super.

[@garybrewer9059]

Not sure how you qualify for a pension when you get more now than when you worked .

[@adriaandeleeuw8339]

@@garybrewer9059 note he said it was a UK pension, British pensions are not means tested.... Prince Phillip when alive received an old age pension.

[@jaccilowe3842]

because your super is not means tested@@garybrewer9059

[@johncanalese588]

@@adriaandeleeuw8339 The Poster clearly said they get TWO pensions one from the UK and the other from "normal Government Pension" which I presume is Aus Government Pension? I too, am perplexed as to how this happens unless her previous salary was like $50 a week as you don't need much super balance before Pension entitlements become ineligible.

[@margi9103]

Money received in retirement from your super fund e.g. a super pension, is not counted as income by the ATO. Using the term ‘salary’ was misleading. At 60 yrs of age it is also tax free. If you paid contributions to your super fund in your working life, it’s already your money, just held and invested by your super fund. A retiree on a super pension when reaching pension age may be eligible for a full or part government pension depending on their financial circumstances. Even if they are not eligible for a government pension, at 67 they can apply for a Commonwealth Health Care card. This is based on income, not assets or super pension received. Income would include bank interest or paid work. You may have read about the pensioner who won a a large sum of money but the terms of the win was that it couldn’t be taken as a lump sum. It had to be paid monthly. He lost his pension as it was considered income as it was paid monthly. He could reapply for the pension once the payments stopped. Talking to a good financial planner when planning to retire is a very good idea as they can advise you on how to maximise what you can receive. I also receive a super pension (which also increases annually with the CPI), which is greater than my take home pay when I worked as my compulsory super contributions increased greatly in the last 5 years that I worked. I was a teacher with the NSW Department of Education and I was in their super fund from 1978 which had a defined benefit when I retired which is my super pension for life. I also salary sacrificed into a different super fund as I couldn’t salary sacrifice into the defined benefit one. I also receive a monthly super pension from that one.

[@johncanalese588]

What he also failed to mention is that when you retire and enter the so called "Pension Phase", and start receiving an income stream, the Superannuation fund can continue to invest your funds and ALL earnings from this investment are 100% TAX FREE up to a cap of $1.9M of fund balance. Before this phase the fund had to pay a fairly reasonable 15% tax on earnings. I know, as I just officially entered the Pension Phase about two months ago. Also, Superannuation is in addition to the Government funded Age Pension Scheme which is not very much money, but is still available to all Australians who have NO Super or have whittled it away.

[@down7own7]

The pension is means-tested, including your Super balance. How much money you have in Super determines whether you get all, part, or none of the government pension.

[@Alicia-ij6gt]

@@down7own7 sure. But someone who earns so much from super that they no longer qualify for a cent in pension, is a whole lot better off than someone relying entirely on the age pension.

[@geebeebee]

Have just turned 60…transition to retirement. Collecting $5,000 pm tax free from my Super whilst the balance stays invested and appreciating. Still allowed to work part time. The architect of this scheme former Treasurer and Prime Minister Paul Keating has been vilified over the years. This scheme started 40 years ago. Everyone in Australia that has worked since then should thank him….

[@rossmurray6849]

There's another enormous benefit the system of compulsory retirement savings produces for country as a whole. It creates a huge pool of investment capital looking for investment opportunities that can focus on long-term and widely diversified returns. And most large funds have have very low management costs; they operate for the benefit of contributors not the fund managers! Earnings rates averaging over 8% across decades of operation are quite common. And the real reason this system was introduced was to prevent government spending becoming strained by paying pensions to retirees as the population ages. The government funded old age pension can be generous enough so beneficiaries can enjoy a comfortable retirement because most people reaching retirement age already receive more than that level from their own savings, so they don't qualify for that benefit.

[@mehere8038]

Fun fact, people were permitted to withdraw some of their super money during the pandemic if they needed the money to cover costs of living, which is part of why we were able to do the lockdows we could without as much impact on people's lives. Just thought this was relevant to mention when discussing the 65 year old withdrawal requirement

[@SpeedfrkOne]

Yes but few realised it was also taxed - not tax free.

[@nat-815]

@@SpeedfrkOne in terms of including it on your personal tax return it was tax free, if you paid tax on it you may want to see if you're in the window to amend that tax return

[@gregorturner4753]

also if you work for an organisation that has salary sacrificing then you can sacrifice a portion of your salary to top up your super as well. (these are usualy gov or not for profit organisations that offer salary sacrificing as an option. So Salary Sacrificing is when you ask for an amount to be taken out of your pay before tax to reduce your taxable income. usually used to fund say a new car were you can sacrifice an amount, which is paid to a company (ie macquire bank) you then go and purchase a new car which is paid for by the bank like a loan BUT all expenses are taken from your pre salary deduction, so you would get a fuel can, a number of services per year, new tyres every two or so years and insurance. or as mentioned go into your super to boost your savings (people do this when they are close to retirement age to increase their super more than would have been possible.)

[@cherylb309]

Thanks Ryan, that wasn’t boring to me. The treasurer brought in during COVID that workers were able to take $20000 from super to help workers suffering financially. These funds were not taxed.

[@EgoFeederz]

Oh wow how generous they gave you your own money.. Learn how to think.

[@valsyaranamual6853]

Wow, when you can't work and not on a pension because of COVID it was a real help. Yes ,it is their money but is paid into Super by the employers and to help them when they retire. What did you get during Covid?@@EgoFeederz

[@cherylb309]

@@EgoFeederzSuper is able to be withdrawn at retirement age or under extreme hardship. This along with a pension allows you more money to live on when you have retired. Or you can have a self managed fund. The money therefore is unable to be accessed. A family member is a financial adviser….don’t tell me how to think without thinking yourself.

[@gremlinfishing4286]

​@@EgoFeederzpulling the $20,000 out was not a smart move unless you really needed it , if you were about 27 years old at the time it would cost you about $100,000 in earnings by the time you retired , if you think that's a good idea , I will lend you $20,000 and you can pay me back $100,000 .😂

[@karenstrong8887]

We started late with Super but my husbands company pain in 12% which they increased to 18%. My husband paid his own contributions which is called a Salary Sacrifice. He paid the highest amount allowed and we are not taxed on any money put into Super. We chose to have ours with a big company. Some is invested in high risk but high profit areas and the rest in safe areas. We are retired now and they only ever increased our money for us.

[@user-sm2pk8xf1l]

I love Super, mine pays me for all my life no matter how long I live and increases twice a year, better than the pay rises when I worked!

[@Alicia-ij6gt]

You must have converted it to a lifetime annuity. Smart move.

[@57Cell]

* yes, super is invested. The investment is managed by an investment fund called a "super fund", not the government, not the employer. * "Australian shares" means shares in companies listed on the Australian stock exchange * Some government jobs offer even higher super rates, eg 17+% * Super funds offer, for example, life insurance or income protection insurance. * It is possible for individuals to contribute more, but there are limits before it's no better (taxwise) than just investing the money oneself.

[@gregself6203]

Employees have it pretty good in Australia. Self employed people, such as tradies, often don't pay themselves Super and can end up worse off than people in regular jobs..

[@bevhowell7665]

I’m self employed you should do your own super, money grows madness not to set it up

[@nat-815]

As of a few years ago if you're a sole trader and work based on an hourly rate E.G you're a tradie who's working for a company or another entity building a house they are now legally obligated to pay your super as they would if you were an employee

[@pauld2216]

Have lived in the USA & NL, as a Aussie the Dutch living standard was probably higher (better health care - free basically but higher overall taxes). USA cost of living was about 50-60% of Australia. Food costs were about half in the USA. Clothing cost about half of what it is in Aus. Quality if clothing was generally higher in the USA (thicker cotton t-shirts etc). Rent about the same, living in Oakland, working in SF. Compared to living & working in Sydney. Major purchases like a car are cheaper in $ terms in the USA compared to Australia. Housing can be much cheaper in the USA compared to the Aus (in a non major city where jobs are still alright). Health insurance/health expenses & Education in the USA compared to Australia are like 2-5x. Each have their pros & cons. Single/young (

[@peteratkinson8957]

When this was introduced, workers through their unions agreed to forgo wage increases which were instead paid into superannuation. Like most of the benefits enjoyed by Australians it was introduced by the Labor Party which is the party of the current Australian government. This is similar in ideology to the us Democrats. The Australian Liberal party (similar to the Republicans) are the consevatives. They generally oppose change to benefit workers and are supported by major local and multi-national big business. I'm a 70year old Australian and can't think of anything good the liberal party has ever done for ordinary average Australians. Sound familiar to this in the US?

[@peter65zzfdfh]

John Howard did one good thing (Gun control). And one ok thing (GST replacing sales taxes etc) that he initially did very badly. That's all I can think of. And that was a long long time ago now. The reason for the forgone increases were because everyone was smart enough to realise that inflation was out of control and giving everyone more money they could spend instantly just made it worse and was thus kind of useless as the extra money would instantly disappear. We are no longer that smart and for some reason will be giving tax cuts mostly to the wealthy during high inflation.

[@AustralianHistory-ip1tp]

Absolutely. ALP forever

[@chrisrabbitt]

Liberals like Labor have done good things and both have done their far share of crap things and since you need an example here is a good couple for you and both in your early life. Guess you didn't pay much attention back then, not that you seem to be doing any better now.. In the early-1950s, external affairs minister Percy Spender helped to establish the Colombo Plan for providing economic aid to underdeveloped nations in Australia's region. Under that scheme many future Asian leaders studied in Australia. In 1958, the government replaced the Immigration Act's arbitrarily applied European language dictation test with an entry permit system, that reflected economic and skills criteria. In 1962, Menzies' Commonwealth Electoral Act provided that all Indigenous Australians should have the right to enrol and vote at federal elections (prior to this, indigenous people in Queensland, Western Australia and some in the Northern Territory had been excluded from voting unless they were ex-servicemen).

[@catprog]

Gun buy back. But that is the only recent thing I can think of.

[@AustralianHistory-ip1tp]

@@chrisrabbitt Menzies era liberals were the only semi decent ones and I would vote Harold Holt 1966!

[@kathleenmayhorne3183]

My bro-in-law lost his super, when his company's investments tanked, before the gov't decided to make sure you couldn't lose it all. Some folk also add their own funds to top-up the totals.

[@dalebecalm3528]

Superannuation is part of your wage. Think of it as the government forcing you to save part of your wage for retirement 😊

[@algoormay8430]

I am in an industry super fund.Average is 9 to 10 percent annually.The conservatives of this nation blocked this for years until they realised the benefits of this.Less pension in the long run.

[@peter65zzfdfh]

I think they'd be ok with creating future problems for the next generation if it got them more donor contributions from employers who could spend less money on employees...

[@aussieragdoll4840]

Meanwhile, the LNP fools were bleating about how much of a ‘drain’ on the taxpayers ‘welfare’ payments are… and they included the Aged Pension in the ‘welfare’ label. How much money did I miss out on while working as an Interpreter for the Deaf (sometimes had 9 different employers) because of Howard’s stupid law that said if you didn’t earn at least $450/mth from a single employer… that employer did not need to make a Super contribution for you! A policy which disadvantaged mostly women who were the ones more likely to work casually and have multiple employers and not meet the $450/mth threshold. Thankfully Albo & Labor got rid of that stupid rule.

[@RandomStuff-he7lu]

I remember when the LNP during their 9 years in government from 2013 to 2022 were recommending certain Super funds which had among the lowest returns but were of course run by their friends.

[@suekleinschmidt5949]

Hi Ryan, I love that while you're learning about Australia from these videos, I'm learning more about America from you! I love your channel. 😀💜🐨🙋‍♀️🦘👍👍👍

[@mrsb6839]

Thank God for super my father is law has been diagnosed with lung cancer and he was able to get get his super as he can't work anymore and his able to still pay for the bills and rent and not have to stress about that while fighting his cancer battle

[@Classic-Ov3rThinker]

We also have the aged pension. So that amount of approx $500k for a comfortable retirement would factor in the pension plus your super. The more super u have the less pension you get. I believe the pension cuts off if you have over $900,000 -$1million in superannuation

[@TheRubeeRose]

Ryan Ryan are we converting you to socialism? really? are we? are we? ... @5:10

[@itsmebloke]

I made a major mistake with my super. I cancelled my life and TPD cover because I was out of work and it was eating into my super balance. 12 day's later, literally 12 fricken days I took on a day's work for a company driving a semi trailer. It was a few hundred in my pocket that I really needed. It was a 2-hour drive from location back to the holding yard. Its 1am on an unlit highway that ended in a T intersection and only one 4inch high by 8inch long warning sign 250m before the intersection. I was even looking for this sign because I had issue with the trailer breaks earlier that evening. I missed the sign came around the last corner before the intersection and had less than 100m to stop 32toone at 80klm/h and the second I touched the breaks it was clear the trailer breaks had failed. I warned my offsider that we were about to crash and all I can do is attempt to make the impact as small as possible. I brought the truck sliding sideways down to about 30klm/h from 80klm/h and impacted the ground as the truck slid off the road and 5 tyres on 1 side gripped the soil and stopped dead and the momentum of the truck pushed it over. I suffered a broken spine and pelvis suffering paraplegia for some time and still suffering paralysis from the injuries. I haven't been able to contribute any meaningful money into my super since.

[@simoncotterill7274]

As at today it’s 11% and will rise to 12% by 2025

[@maia_key]

All the wonderful things you mention are credit in no small part to the Great Australian Labor Party! Please come and visit soon mate

[@pamelabaars6896]

At times we have a Government in power that care about workers and UNIONS that’s why. GO LABOR

[@helmuthschultes9243]

Some items I did not see mentioned, include that above the employer's contribution, the person can contribute from their salary within annual limits set by government, above that employer legislated amount. Why do that? Well one benefit, derives from an item not to my notice presented in that video, the earnings of the superfund is only taxed at 15%, while salaries/wages face taxes staged from around 27% to high annual incomes taxed above 40%. The pretax personal contributions are also only taxed at 15%, not your personal tax rate based on your annual income. That can be a considerable saving when your income tax rate is high like 40%, and even far better than minimum tax rate of 27.5%. Beyond that, again with some limits, you can lump sum contribute from "after tax" money, even part of money gained for example on diwnsuzing the home after children have moved away, and you sell a now overly large home, buying smaller or better located home for later years of life. Tsking some now spare cash to invest in the superannuation fund, gaining faster earning at the low tax rate, 15%, compared with bank interests, investments and such. Good funds have annual average earnings in some cases over 10% in past 10 years, while depending on annual performance going even negative some periods and much higher other times. Events like the big world financial crisis of recent times, caused funds to go badly into negative times. Poor funds might average only 1% or less over past decade. Back in late 1970s, as I was starting my second employment position after gaining engineering qualifucations, long before compulsory superannuation, I committed to a personal superannuation plan. Money put in from after tax money, and locked once deposited into the plan until reaching 60 yrs age. It had the 15% tax on earnings, but few of the now better compulsory schemes. It was Ok for a long time, run by a mutual benefits company. That sadly in recent times has miserable performance and lousy earning for quite a long time. It is now near 1/4 million and still good compared to actual contributions. But far below what I could have had, if I had chosen to close it by combining with other compulsory fund, that evolved from my employer run superannuation fund. This commenced a couple of years after joining that employer, with pretax money I contributed and matched by the employer plus 3%. As the government compulsory superannuation was legislated, the company progressed from this company run scheme into an industry run fund, and went through two fund management changes. After 40.5 years with that employer, retiring in late 2017, and not yet drawing on any of that funds, I have over 2 million, typically earning over 10% per annum, taxed at only 15% of that earning. Management fees and costs are low as it is a not for profit industry fund. So continues good growth, as long as the world economy is not again suffering a financial collapse like the all too recent major crisis initiated in the US. It is still of concern how badly the US economy appears at present, hopefully no repeat collapse again soon. Whatever I feel confident that financially I should remain secure baring world financial collapse or world war crisis.

[@Tt-qm2xg]

When I met my partner, I had 6 super accounts. He about had an aneurysm 😂

[@johnblyth9787]

I for many years worked before Super was compulsory. Also worked self employed 12 years. Another thing not covered is Salery Sacrifice. You elect an amount to pay in and your income tax is reduced. Say you put in $100 a week. Your tax could be reduced by $30. This is often done by those with the kids gone and house paid off. The down side, no free lunch. A house cost 1 million, with super 1.1 million.

[@gregorturner4753]

another benefit to the super scheme not mentioned is you can access a portion of it if you are facing financial hardship. The rules to do so are pretty strict including being on benefits for a set period of time (ie pension or jobseeker) if you meet the requirements though you can access up to ten thousand dollars (which is taxed btw) once every 12 months. they put this in place as a further social safety net but also to prevent people just randomly dipping into their super. So how it works is say you lost your job, are on jobseeker but not having much luck after six months you can apply to your super, they check with the gov that you meet the requirements if you do you can nominate how much you need which can then help with bills etc. there are other times similar ie natural disaster if say your house was flooded or damaged by bushfire then you can do similar, but check with the gov and the super fund on the rules.

[@Sticks31]

A major difference between Stralya and the U.S. is that here we look after employees whereas in 'Merica the employer is king (and emperor and god). This video didn't mention things like the huge tax advantages of making your own contributions into super, or things like your investment earnings are taxed at only 15% in superannuation and they are tax-free once you retire and start drawing an income from your fund. We also get mandatory 4 weeks vacation, including pro rata for part-time workers. We get holiday leave loading on top of holiday pay. Mandatory long service leave. Maternity leave. Sick leave. Redundancy payments (a "package") if you are laid off due to staff cutbacks. I was retrenched (made redundant) at age 64 after 20 years with my company and got a payout of more than AU$200k **after tax** for my redundancy. Perfect timing for me to retire and reap the benefits of my super on top of that.

[@stinger15au]

One thing not mentioned here is that while the minimum is only now 10%, there is huge tax breaks for contributing your own salary. In addition, that 10% is only the minimum an employer must contribute. Mine does 13.5% soon to be 14%. Extra Super contributions are taxed at only 15% upto about $30000 a year, so a lot of people have something like 10 to 14% plus 3 to 7 % for a total of around 18-20% of their pretax salary being added to their fund. Over a lifetime of work, that makes for a pretty comfortable retirement.

[@mjohnstone2399]

A great video explaining Superannuation funds. Chosing an appropriate superfund can be a challenge i.e Retail/Industry/Self managed etc and "expected" return rates and fees. Eg. Some are high growth and higher risk which might be more appropriate when younger and short term market fluctuations are not important until get closer to retirement. A lower risk super fund might be more appropriate when closer to retirement etc.

[@StuartConsulting]

It is a good system, you can check your super balance at any time online and reaching the age of 59, decide when you have enough to retire on. It’s true if you have more than 1 super fund, you can authorise your preferred super fund to get all the super transferred from the other super funds into it, no transfer fees, and there is nothing the other super funds can do to stop you - I’ve done it.

[@Maddie63869]

My hubby and I are retired and have been living on his super for about three years. We are yet to touch my super yet. We draw a certain % each month for our living expenses and live a very comfy life (luckily, we own our own home, though). So far, both our super accounts due to wise investing by our financial advisor have increased in value over the past 3 years. Compulsory super is one of the best things our government has done!!

[@flain283]

As a 42 yr old, i have some bad news. I would of had more money today if instead of my super going to a super company, went to a bank account somewhere. I lived through the financial crisis, and my super basically lost more than my employer had put in for the previous 5 years. Then after the financial crisis was finished, i moved to a new employer, moved to a new super company (due to the new employer having a preferred fund) and they also did pretty crap (less than the bank interest rate) for 5+ years. I moved companies over the years as my career progressed. Every time, my super either lost money, or did worse than inflation or the interest rate. 20+ years into my career now, and the balance in my super account is way less than the total contributions by my employers (about 70%). It would of been WAY better if they just put the super money into a bank account.

[@johncanalese588]

I am sorry but this says more about you not managing your Superannuation better! We ALL Australians went through the same Financial ups and downs. I suggest you get professional Financial Advice (your comment about having it better in a bank account shows a degree of nativity - for years you got just about 0% on your balance!), as it is YOUR money really and you should look after it. Having said that, at your age you've got 20+ years before retirement so get it fixed now and you will enjoy a comfortable retirement.

[@Alicia-ij6gt]

If you had saved that money in the same types of investments outside super, it would have tanked the same way (but you would have paid more tax). You want the certainty of bank deposits? Then choose them for your superannuation. But don’t expect to earn much when the stock market is booming. Manage your super. It’s your responsibility.

[@lynneobrien3241]

My company pays 13% and I add a further 5%. When you retire you can convert your super to a pension acc where you get regular payments but your money is still invested. After 65 you don’t pay any tax on super withdrawals. If you are clever you can claim a government pension as well.

[@HenriHattar]

It is calculated that in less than 10 years, because of the compounding nature, this should provide Australia with an EXTRA 100 TRILLION dollars, making it the richest country in the world IF THIS HAPPENS. The CURRENT S G is 11% that is paid by the EMPLOYER ..BUT,,,the EMPLOYEE is also required to co fund, so this grows the figure, ALSO if you fall into a certain category, the Government will ALSO fund as an EXTRA , addtional funding to the supperannuation. It is compound NON taxable income, so it grows like a fire .

[@peter65zzfdfh]

Employees are not required to co-fund, but some government jobs match a few extra % if you do.

[@HenriHattar]

ACTUALLY there is a category that if an employee falls into that categoruy the government will FUND extra into the super account whether the employer works for the government OR NOt, Employess can contribute too, as you know, the rules have changed a lot but most rule changes bring extra benefits although some would argue.@@peter65zzfdfh

[@sandramae987]

As an Australian woman, time out to have a family and look after an ill husband meant I had about 1/3rd of an equivelent male worker. My husband's went on looking after him and left some to me. But as he was working before compulsory super ( he was a lot older than me) so he had not a lot in there. My point is lot of women retiring now, especiaaly non-partnered ones, are poorer and manybare 6 homeless because of the years they could not work and save. Remember, until the very late 20th C a female public servant in Australia had to resign her permanent job when she married. After that she could only be a temporary employee, losing all benefits. Women got about half to 75% of the rate of men's pay fhe same work back then, and were clustered in low paid professions. Hopefully the new generation of female workers will retire on a good and equal levels of superannuation money.

[@krisxmas7805]

Your salary is equal to base salary + superannuation (currently 11% and rising to 12%) This is your wage The money is NOT an employer contribution it is part of your renumeration !!!!!! The employer is required to pass over your 11% to authorised superannuation fund on a regular basis. The employee can choose which approved fund they want their money to be held in. Years ago to start the process employees traded off a productivity pay rise (in their pocket) for the compulsory savings into approved superannuation funds . Also Employee can contribute extra savings into the approved superannuation fund up to a limit. The fund earnings are taxed at a lower rate while they stay in accumulation mode (your working life)

[@wayne8469]

Best thing since sliced bread. I'm an Australian living in Thailand with a fortnightly Super payment and a part pension. We often complain about our government but some things .. like this they get right.

[@RoyHolder]

I worked my super pretty well, when I retire I'll have about $500,000 nest egg to live off plus whatever pension that goes with it cos I got to share it with the missus. PS, Politicians get %15 super PLUS a pension, taxpayer funded...

[@Alicia-ij6gt]

The pension is no longer available to those first elected in the past dozen years or so.

[@PeterKelley]

Note that employers adjust your base salary to reflect super. If the SG percentage goes up then employers reduce your base salary so they are paying the same amount but you get less take home pay (with more going to super)

[@down7own7]

Pretty sure that's illegal without you specifically agreeing to it

[@nat-815]

If your employer is doing that then report them because unless you've specifically agreed to that it is illegal

[@PGX8108]

It depends on whether your salary is inclusive or exclusive of super, a lot of salaried positions are inclusive to make the salary sound better it’s a sucky thing companies do.

[@kjcakesandfun2222]

INSURANCE. Through your super fund you can pay an insurance for 1) income protection which will cover up to 80% of your wage if you can’t work for an extended period of time. 2) permanent disability insurance 3) life insurance, which is paid to your beneficiaries of your choosing.

[@geoffbarnes2758]

I'm so grateful to live in Australia. I love my country. We are very fortunate.

[@gingin4920]

Aussies get reminders all the time via TV commercials, banks, super funds etc to consolidate if they have multiple super accounts, so you don't miss out on forgotten funds.

[@MatthewSwift-xc8sn]

The video did not show the full benefits I received a Gov pension in addition to my super pension.

[@daltsy]

Happy to say that as of yesterday my Super has gone up to 11.5%. Also, the Australian Government provides a free service to help people find and consolidate their different super funds.

[@petermills8798]

We are very lucky to have this scheme! Can I please critique the lighting? When you were talking about the sun I thought you meant the ceiling light. That light shines ever so bright above your head and you keep blocking and unblocking it with your noggin. Please get some soft side lights and either dim or turn off the overhead? Love the videos.

[@carolthorson7854]

When I first started working in a government job, our contributions were matched by the employee, much the same as Ryan was saying Americans did. The super is supposed to be protected and no government is allowed to touch it, but every now and the Government tries to find a way to get their hands on it, usually to devastating effect to those retiring soon after.

[@BassMatt1972]

I worked in Universities for 15 years. We got paid 24% Super. More than anyone. I have $350k from 15 years work.. Industry funds are safer, not commercial. I'm in UniSuper (the top industry fund for last 5 years) as I worked in Unis (anyone can join). I pay a couple of hundred $ in fees a year. We ALSO have paid pension which you can get as well.. so I'll be living on pension and a super income to take to about equiv of $50k a year income when I retire in 15 years. I can split my Super into Growth, High Growth, Balanced, all kinds of different categories. Cost me $12 to do. Saved myself over $10k at the start of Ukraine war by moving to safer investments for 3 months.

[@kadmow]

- yes it(Superannuation) is a privatised pension "offset" system / "scheme" - it all comes off the employers bottom line - invested "privately" (stockmarket index exposed usually - rather than the employer using internally for future business expansion, etc) - ie . NOT a company pension scheme... Even casual workers now have this paid - so the employer has to remit (or equivalent): ( this gets complex quickly) - Holiday pay (4wks) with 17.5% "loading (9% of wages as earned), GST 10% (to government)- not offset by paying wages, superannuation 10.5% (the worker gets this taxed at 15% straight away - so they lose - sand 15% on the other end if they don't wait until nearly dead) - Workers compensation insurance ~8% - to a privatised insurance body , then the worker is taxed on a sliding scale from 20% to 45% as the earnings go from 18k to 180k (this too is a real Employer cost, as workers really only care about take-home wages - unseen imaginary pre-tax income pffft)... Then we have various minimum: wages, conditions and loadings, depending on what Job a worker ("Award") is doing - so one needs to employ another person to manage wages as soon as they employ 5 people or something.... Is there any reason small business suffers here??? - or elsewhere (red-tape abounds) - simply paying "contract rates" isn't technically allowed id a worker works for one enployer for most of the year.....