Starting work? A guide for teenagers joining the workforce

Compare super funds for teenagers and learn what your tax obligations are when starting your first job.

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There's a few things to organise before you start your first job. Firstly, you'll need a bank account to receive your salary or wages into. And as soon as you start earning an income, you'll also be required to lodge a tax return and your employer may be required to make superannuation payments into your nominated fund.

If you or someone you know is about to join the workforce for the first time, this guide can help outline what you need to set up before starting work and how to do it. You can also compare a range of different financial products in this guide.

QSuper- Lifetime MySuper

QSuper Lifetime - Aspire 1

QSuper- Lifetime MySuper

The QSuper Lifetime option continually adjusts your investment mix in line with your age and super account balance.

  • One of Australia’s largest profit-for-members funds
  • No transaction or switching fees
  • Find and consolidate your super with QSuper’s online tool
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Superannuation for teenagers and new workers

Superannuation is compulsory for Australian workers. Superannuation is how you'll save for retirement (even though this seems like a long way away now!). If you're over 18 years of age earning a minimum of $450 monthly before tax, you will be entitled to superannuation guarantee contributions from your employer.

Your employer is required to pay 9.5% of your annual earnings into your super fund. This figure will gradually increase over the next few years until it gets to 12%. Similar to tax, your superannuation contributions are something that your employer is required to manage on your behalf. Your employer will pay the super you're entitled to into your nominated fund each quarter.

Your employer may have a preferred super fund, but you're also entitled to choose your own fund. as a young person new to the workforce, it's important to look for a fund that charges low fees. You might also want to consider what insurances you need, if any, included in your super. For example, if you're in your teens you may not think it's necessary to have life insurance or income protection.

What you need to do

  • Compare super funds (you can do this in the table below) and join the fund as a member.
  • Complete the superannuation choice form that your employer gives you with your super fund details and membership number.
  • If you're entitled to super contributions, make sure your employer is paying these by regularly checking your payslips and your super fund statement.

Compare super funds when starting work

Name Product Past Performance - 1 Year Past Performance - 3 Years Past performance - 5 Years Calculated fees p.a. on $50,000 balance
QSuper Lifetime - Aspire 1
11.03%
9%
9.74%
$395
The Lifetime option is a MySuper product that adjusts your investment mix each 7-10 years as you get older.
QSuper is a member-owned super fund and is one of the largest super funds in Australia.
AustralianSuper - Pre-mixed, Balanced option
8.67%
10.72%
9.48%
$437.65
The Balanced option is a pre-mixed, MySuper fund that invests in a diversified range of asset classes.
AustralianSuper is an award-winning industry super fund and is the largest super fund in Australia.
Sunsuper Lifecycle Balanced
8.52%
10.48%
8.9%
$523
The Lifecycle Balanced option is a MySuper product that invests your super in a balanced fund until you’re near retirement.
Earn a Retirement Bonus of up to $4,800 when you open a new Income account. T&Cs apply.
Virgin Money Super - Lifestage Tracker
10.02%
N/A
N/A
$358
The Lifestage Tracker is a MySuper product that invests in a range of asset classes in line with your age.
Performance figures and fees are based on the LifestageTracker: Born 1969-1973. Earn Velocity Frequent Flyer Points for making contributions to your super (T&Cs apply).
HESTA - Core Pool
7.25%
9.58%
8.32%
$533.53
The Core Pool invests in a mix of asset classes and is an authorised MySuper product.
HESTA is an industry super fund open to all Australians and designed for employees in the health and community services sector.
Future Super Renewables Plus Growth
9.24%
N/A
N/A
$958.60
Future Super is Australia’s first 100% fossil fuel free super fund and is certified by the Responsible Investments Association Australia.
The Future Super Renewables Plus Growth option has a 20% asset allocation in renewable energy projects while excluding investments in live animal export, tobacco and gambling.
Australian Catholic Super Lifetime - Grow
6.03%
N/A
N/A
$588
The LifetimeOne investment option is a MySuper product that changes your investment mix as you get older.
A Catholic super fund open to all Australians and designed for people working in Catholic education, healthcare or aged care.
Superestate Balanced Essentials
New Fund
New Fund
New Fund
$291.50
The Balanced Essentials fund invests in a range of shares, residential property and other assets and has a medium level of risk.
Superestate focuses on investing your super in physical residential properties and charges some of the lowest annual fees in the market.
LGIAsuper MySuper Lifecycle - Under 75
7.27%
9.06%
7.79%
$598
The LGIA MySuper Lifecycle option aims for higher returns while you’re under 75.
LGIA is a medium-sized, member-owned super fund open to all Australians.
First State MySuper Life Cycle Growth
7.71%
10.09%
8.3%
$549.42
This MySuper product will invest your super in a pre-mixed Growth fund until you’re 60, then it’ll switch to Balanced.
First State Super is a not-for-profit super fund with more than 750,000 members around Australia.
BT Super for Life - MySuper Lifestage Fund
7.36%
9.72%
7.73%
$643
The MySuper Lifestage fund invests your super in a mix of asset classes depending on how old you are.
Westpac Group customers can manage their super alongside their day-to-day bank accounts.
Cbus Growth
6.99%
9.91%
9.03%
$559.11
The Growth fund is a pre-mixed investment portfolio and an approved MySuper product.
Cbus is a leading industry super fund for the building and construction industry, that’s open to all Australians.
BUSSQ MySuper Balanced Growth
4.88%
7.79%
8.03%
$682.65
The MySuper Balanced Growth option is a ready-made, diversified fund with a medium level of risk.
BUSSQ is an industry fund designed for the building and construction industry and open for all Australians.
Suncorp Lifestage Fund
6.6%
6.47%
7.08%
$581.80
The Lifestage Fund readjusts your investment mix every few years to reduce your level of risk as you get older.
A retail super fund that offers access to personalised financial planning and advice.
HostPlus Balanced
6.8%
10.8%
9.65%
$546.76
The Balanced fund invests your super in a range of assets and is designed for high long-term growth.
An industry super fund open to all Australians with a focus on the hospitality and retail sector.
MTAA My AutoSuper (Balanced)
7.66%
9.33%
9.03%
$469.76
The Balanced option is a MySuper product that invests in a range of asset classes aiming for medium to high long-term returns.
MTAA is a national super fund available to all Australians with a focus on the motor trades and automotive sector.
REST Super - Core Strategy
5.94%
8.57%
7.36%
$518.33
The Core Strategy is a diversified investment portfolio that balances risk and return, and is an authorised MySuper product.
REST is an industry super fund tailored towards the retail sector and open to all Australians with almost two million members.
UniSuper Balanced
9.88%
9.97%
9.35%
$371
The Balanced option is a MySuper product that invests in a mix of growth and defensive assets.
A flexible industry super fund for people who work in Australia’s higher education and research sector.

Compare up to 4 providers

The information in the table is based on data provided by Chant West Pty Ltd (AFSL 255320) which is itself supplied by third parties. While such information is believed to be accurate, Chant West does not accept responsibility for any inaccuracy in such information. Chant West’s Financial Services Guide is available at https://www.chantwest.com.au/financial-services-guide . Finder offers no guarantees or warranties about the data and we recommend that users make their own enquiries before relying on this information. Performance, fees and insurance data is based on each fund's default MySuper product. Where the performance, fees and insurance data for the MySuper fund vary according to the member's age, results for individuals between 40-49 years of age have been shown. Past performance is not a reliable indicator of future performance.

*Past performance data is for the period ending June 2019.

Opening a bank account in your name

If you don't already have one, you'll need to open a bank account in your name to receive your salary or wages into. It's very rare to be paid in cash these days, and even if you are paid in cash it's a good idea to have a bank account to deposit the money into where it's safe.

Your bank account will come with a debit card that you can use to access your money at ATMs and EFTPOS terminals.

What you need to do

  • Open an Australian transaction account that accepts deposits (not a savings account).
  • Your employer will give you a form to complete with your bank details. Fill in the BSB and Account Number for your bank account, which can be found in your Internet or mobile banking portal.
  • Get into the habit of checking you're paid correctly each payday by looking at your payslip and making sure this is the amount that was put into your bank account.

You can compare Australian bank accounts in our guide, and open one online for free in minutes.

Your tax obligations when starting work

When you branch out on your own and start earning an income you'll be required to lodge a tax return and pay tax. That is, if you earn enough to be taxed. Working Australians who earn less than $18,200 in a year are not required to pay any tax. If you earn over this, you'll need to pay tax according to how much you've earned.

If you're required to pay tax, you don't personally need to make this payment to the Australian Taxation Office (ATO) yourself (unless you're self-employed). Your employer will withhold a percentage of your pay each payday for tax. At the end of the financial year if you've paid too much tax throughout the year you'll get the amount you've overpaid back. If you haven't paid enough tax, you'll be required to pay the amount owing.

To help manage this process, it's important that you set up your tax file number. This number stays with you throughout your working life, and is used by both your employer and the ATO to ensure you're paying the correct amount of tax. If you don't set up a tax file number your employer will be forced to withhold tax from your salary or wages at the highest tax rate (currently 45%).

What you need to do:

  • Register with the ATO to get yourself a tax file number
  • Give your tax file number to your employer (they'll provide you with a form to complete)
  • Lodge your tax return with the ATO at the end of the financial year before the October 31 deadline. You can do this yourself online or you can use a tax agent.
  • Remember to claim any work-related expenses as a tax deduction. You can learn more about what you can and can't claim on tax in our deductions guide.

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