Getting paid involves a whole lot more than just money and thinking about how you’re going to spend it. It’s good practice to understand how it works. 

Your pay will go straight into your bank account or you will be paid in cash. If you are paid in cash make sure that you are being paid the correct award rate (find out more with this award rate calculator), and that you are being paid superannuation. Some businesses pay their employees in cash to avoid paying the correct amount of tax and wages. This is illegal and unfair. This article will let you know all the things that should be included in your pay. 

Tax File number

If you are starting your first job, you will need to apply for a Tax File Number (TFN). The Australian Taxation Office will give you a TFN to help manage your taxes and superannuation. The number is unique and yours forever! Click here for more information on why you need a Tax File Number. Find out more about applying for a TFN, you might even be able to apply through your school.

TFNs are super important because it is how your workplace lodges your wages. It is also how the taxation office can keep track of how much you earn, and how much tax you pay. Then at the end of the financial year, they can calculate how much you owe or how much you will receive back. If you don’t have a TFN this means that you aren’t paying taxes and this could lead to some pretty serious financial consequences. 

Superannuation

You may have seen a lot of advertising about superannuation or super. Superannuation is money set aside for when you retire. Your employer will pay your superannuation into your super fund for you. 

Your superannuation does not come out of your pay, it is an extra amount of money your employer has to pay. Your employer has to pay an additional 11 per cent of your wage into your super fund. These payments are called super guarantee contributions. Super funds invest your money in things like shares and property meaning that the money in your super grows over time. You may be able to choose your own Super Fund or your employer might pay it into a default fund that they have chosen. You can access your super when you retire.

You can find more information about super on the ATO website and visit the Money Smart website to find out how a super fund works. You can also read our article ‘What is superannuation?’. 

Pay Slips

Your employer must give you a pay slip every time you get paid. Your pay slip must include:

• How many hours you worked
• How much you get paid for those hours
• How much superannuation was paid into your super fund
• How much (if any) money was taken out for tax

Your pay slip will have gross pay and net pay amounts on it. Gross pay is how much you get paid before anything is deducted (like tax). Net pay is the amount you actually see in your bank account, it’s how much you paid after tax.

You may be given a hard copy of your pay slip, sent an email with an electronic version, or you may be able to access it online.

I think I’m being underpaid, what do I do?

It is important to know you are being paid the right amount. You can check how much you should be getting paid on Fairwork Australia’s website or try calling your trade union for advice on pay rates and what to do if you’re underpaid. 

If you think you’re being underpaid, talk to your manager or boss about the issue. This is a tough conversation so it is good to come prepared. Bring evidence from the Fairwork website and with your workplace union representative if possible. It is important to remember that you deserve to be paid a fair amount and if this job is not providing you with that, they are the ones in the wrong.