Superannuation explained for new arrivals

On top of your pay, your employer puts money aside for your retirement. It’s called superannuation, or super, and for a lot of new arrivals it’s money they don’t know they have. Here’s how it works, how to choose a fund, and what happens to it if you leave.

What super is

Super is Australia’s compulsory retirement savings system. Your employer must pay a percentage of your earnings into a super fund in your name. This is called the super guarantee, and it’s paid on top of your wages, not taken out of them. The fund invests the money until you’re allowed to access it, usually at retirement.

For the 2026 to 2027 financial year, the super guarantee rate is 12%. If you earn AUD 80,000 a year, for example, your employer pays about AUD 9,600 a year into your super, separately from your salary.

Super now arrives with every pay

Since 1 July 2026, under a change called Payday Super, employers must pay your super each payday, in line with how often you’re paid. It must reach your fund within seven business days after payday, with some exceptions for new employees. In practice, you should see super on every payslip and in your fund soon after.

Choosing a fund

When you start a job, your employer should offer you a choice of fund. You can pick any fund you like. If you don’t choose, your employer asks the ATO whether you already have a fund linked to you (called a stapled fund), and otherwise pays into their default fund.

Choosing yourself is worth ten minutes. Funds differ in fees and investment performance, and over decades those differences add up to a lot of money. The ATO’s free YourSuper comparison tool compares the main MySuper products on fees and returns.

• Keep one fund. Each new job can create a new account if you’re not careful, and each one charges fees.
• Link it to myGov. Once the ATO is linked to your myGov account, you can see all your super accounts and combine them online.
• Check your insurance. Many funds include life and income insurance by default, paid out of your balance. Check what you have and whether you need it.

When you can get your super

Super is locked away until you meet a condition of release. For anyone born from 1 July 1964, the preservation age is 60. Generally you can access your super after reaching preservation age and retiring, or from age 65 even if you’re still working. Early access is only allowed in very limited circumstances, like severe financial hardship or terminal illness.

On a temporary visa? You can claim it when you leave

If you worked here on a temporary visa and leave Australia for good, you can claim your super as a Departing Australia Superannuation Payment (DASP). You can only lodge the claim after you’ve left Australia and your visa has ended, but the ATO suggests starting the application before you go.

A DASP is taxed, and the tax is withheld when it’s paid. The taxed element is taxed at 35%. If any of it came from work on a working holiday visa (subclass 417 or 462), the rate is 65%, and that higher rate can apply to the whole payment. Becoming a permanent resident later changes things, so check the ATO’s rules for your situation.

Your super checklist