Understanding Zakat

Yes, but only under specific conditions. Superannuation in Australia is a retirement savings fund, generally inaccessible until preservation age (usually 60 or older). This affects how Zakat is calculated.

Zakat Before Retirement (Pre-Access Age):

If you are not yet able to access your super, Zakat is not payable annually on the balance.

Why?

Because your superannuation funds are inaccessible and illiquid, and Islamic scholars agree that Zakat is only due on wealth that is accessible.

🟡Note - You should start paying Zakat once you reach retirement age and gain access to the funds — not before.

Zakat After Retirement (Post-Access Age):

Once you reach preservation age and can access your super, Zakat becomes applicable on the Zakatable portion of your balance.

How to Calculate Zakat:

1. Determine the market value of your super (cash, term deposits, shares, managed funds)

2. Identify the zakatable assets.

3. Exclude non-zakatable assets.

4. Calculate 2.5% of the net zakatable value.

This nuanced discussion highlights the importance of prioritising local needs while recognising exceptional cases that may warrant transferring Zakat for the greater good of the Ummah.

If you have early access to your super due to hardship or other exemptions, then Zakat applies to the accessible portion in that year.