Pensions / Superannuation in Australia

Australia's old-age pensions are funded by employers, who pay 9 percent of each employee's wages into a compulsory retirement fund. (Some employers pay your salary and, separately, pay an additional 9 percent into the fund. Others will deduct the 9 percent from your "renumeration package". You need to be clear which approach is being followed when comparing the packages offered by different employers.

Pension payments from the government are currently worth $14,615 a year for single people, and $24,414 a year for couples.

Various other allowances may be available for the aged, such as utilities allowances.

To qualify for an age pension in Australia, you usually need to have lived as a resident or citizen in Australia for at least 10 years.

Australian pensions are income and asset tested.

Income Test If a single person's income (not including government age pension) is less than $138 per fortnight ($240 couples) they will qualify for the full age pension.

Income above these amounts reduces the pension payable by 40 cents in the dollar (single) or 20 cents in the dollar each (for couples).

Asset Test If, in addition to their home, a single person has assets worth less than $171,750 (couple $243,500) they will get the full government pension. A sliding scale operates after this. A person loses $1.50 of age pension per fortnight ($39 annually) for every $1,000 of assets above the figure of $171,750 (couple $243,500).