Zakāt on superannuation (Australia)

Superannuation is often a Muslim Australian's biggest asset after the family home, and one of the most common Zakāt questions. Here is a plain guide.

Does super count for Zakāt?

Yes, in principle. Your super is real wealth that belongs to you, even though it is locked until preservation age. What scholars differ on is when the Zakāt falls due.

The approach this app uses

Following Zakat Made Easy, Zakāt is due each year on the zakatable portion of the fund (its cash, receivables and shares), commonly estimated at about 25% of the balance, or the exact figure from your fund. Enter your balance and the calculator works this out for you.

The deferral view

Because compulsory super is locked away, some scholars hold that no Zakāt is due until you can actually access the money. If this is the guidance you follow, choose 'defer' on the super line and it stays out of your calculation until then.

Voluntary contributions

Salary-sacrifice and personal contributions were your choice to make, so many scholars treat them like your other investments even while inside super. The app lists them separately so you can treat them differently from the compulsory part.

SMSF

With a self-managed super fund you control the assets directly, which strengthens the case for paying annually. Value what the fund actually holds: cash in full, shares by the usual ratio.

After retirement

Once you can access your super, it is ordinary wealth. Whatever remains on your Zakāt day counts in full if it is cash, or by the usual ratio if it is invested.