When you start work in Australia, something unusual happens: money appears in an account you did not open, invested in assets you did not choose, that you generally cannot touch for decades. This is superannuation — and for most migrants, it is one of the most surprising and potentially significant financial benefits of working in Australia.

Superannuation is not a tax. It is not deducted from your wages. It is money your employer pays in addition to your salary. For someone earning AUD $80,000 a year, that is AUD $9,600 accumulating annually without any contribution from your own pay packet. For British, Indian, Filipino and other migrants accustomed to much lower employer pension contributions, it is a meaningful difference.

This guide explains how it works, what you need to do, and what happens to your super when you eventually leave.

---

What is superannuation Australia?

Superannuation — almost always called “super” — is Australia’s mandatory retirement savings system. The government requires all employers to contribute a set percentage of each employee’s earnings into a superannuation fund, where the money is invested until retirement.

It was introduced in 1992 to reduce Australia’s future reliance on the Age Pension. Today, Australia’s super system holds over AUD $4.4 trillion in assets — one of the largest pension pools in the world relative to GDP.

The key point for migrants: Super is paid by your employer on top of your wages, not deducted from your take-home pay like income tax. When your employer says your salary is AUD $80,000, your super is AUD $9,600 on top of that — your total employment cost to the employer is AUD $89,600.

Always check whether a job offer is stated as “inclusive of super” or “plus super.” The difference matters significantly.

---

The Superannuation Guarantee rate

The Superannuation Guarantee (SG) is the minimum percentage of your ordinary time earnings (OTE) your employer must contribute to your super fund.

Financial year	SG rate
2025-26 (current)	12%
2026-27 onwards	12% (legislated — no further increases scheduled)

From 1 July 2025, the SG rate is 12%. This applies to all employees in Australia who are 18 or over — there is no minimum earnings threshold. The AUD $450 per month minimum was abolished from 1 July 2022. If you are under 18, super applies if you work more than 30 hours per week.

Super applies to casual and part-time workers too — this surprises many migrants. If you meet the age and earnings threshold, your employer must pay super regardless of your employment type.

---

Payday Super — the big change from 1 July 2026

Before 1 July 2026, employers were only required to pay super contributions quarterly — meaning your super might sit unpaid for up to three months before landing in your fund.

From 1 July 2026, Payday Super applies. Employers must now pay super contributions within 7 calendar days of each payday. This means:

• Your super contributions arrive in your fund faster and begin compounding sooner
• It is significantly easier to check whether your employer is paying correctly — you should see a contribution after every pay cycle
• Employers who miss the deadline face the Superannuation Guarantee Charge (SGC), which includes the shortfall, 10% annual interest and an administration penalty — and unlike regular super, the SGC is not tax-deductible

Check your super regularly. Log in to your super fund’s app or website after your first few pay cycles and confirm contributions are arriving. Underpaid super is one of the most common workplace issues in Australia.

---

Choosing a super fund

When you start a new job, your employer will ask you to nominate a superannuation fund. If you do not nominate one, your employer will pay into a default fund — often their default industry fund or the ATO’s Stapled Super Fund system, which links you to any existing fund you already have.

What to look for in a super fund:

• Fees: Lower fees compound significantly over years of contributions. Even a 0.5% difference in annual fees can mean tens of thousands of dollars at retirement
• Investment performance: Long-term historical returns matter; check the fund’s 10-year performance on the ATO’s YourSuper comparison tool at ato.gov.au/super
• Insurance: Most super funds include default life insurance and income protection cover inside super — check what is included and whether it is appropriate for your situation
• Online access: A good app or web portal makes it easy to check contributions and manage investments

The main types of funds:

• Industry super funds — not-for-profit, profits returned to members; examples include Australian Retirement Trust, Aware Super, UniSuper, HESTA (healthcare), CBUS (construction)
• Retail funds — for-profit, run by banks and financial institutions
• Self-managed super funds (SMSFs) — for individuals who want full control; complex and typically only worthwhile above AUD $200,000 in balance

The ATO’s YourSuper comparison tool at ato.gov.au/super allows you to compare funds by fees and performance. Start there before choosing.

---

Major super funds in Australia

Australia has dozens of super funds. The ones below are the largest, most consistently recommended, and most relevant for migrants in 2026. All are industry funds — not-for-profit, with profits returned to members rather than shareholders — and all have passed APRA’s annual performance test.

AustralianSuper

Australia’s largest super fund by assets and membership. Open to everyone. Consistently wins Canstar Outstanding Value and regularly appears at the top of APRA performance data. Default Balanced option returned 9.52% in 2024-25. Strong digital tools and financial advice services. Good all-round choice for most migrants. → australiansuper.com

Australian Retirement Trust (ART)

Formed by the merger of Sunsuper and QSuper in 2022. Now one of Australia’s largest funds. Won SuperRatings MySuper of the Year 2025. Strong long-term returns and comprehensive insurance. Based in Queensland but open to all Australians. → australianretirementtrust.com.au

Hostplus

Consistently the top long-term performer among major super funds — Hostplus Balanced has returned approximately 8.7% per annum over 10 years, the highest of any major fund. Originally for hospitality and tourism workers but open to all. Won Money Magazine Best Super Fund multiple times. Also offers one of Australia’s lowest-fee index options (Hostplus Index Balanced, fees approximately 0.22%) — popular with cost-conscious investors. → hostplus.com.au

UniSuper

Originally for university and higher education workers but open to all. Won SuperRatings Super Fund of the Year 2026. Strong track record, excellent investment options including defined benefit components for eligible members, and highly rated member services. Particularly good for professionals and academics. → unisuper.com.au

Aware Super

Originally NSW public sector (State Super predecessor). Now open to all Australians. Won SuperRatings Fund of the Year 2025. Consistently strong returns; Aware Super’s International Shares option is one of the highest-performing growth options in the country. Good for migrants who want strong investment diversification. → aware.com.au

Cbus

Originally for construction, building and infrastructure workers. Open to all. Consistently passes APRA performance tests and appears in the top performers on 10-year net returns. Popular with tradespeople and construction workers. → cbussuper.com.au

HESTA

Originally for health and community services workers. Open to all. Consistently recognised for strong returns and member services in healthcare and community sectors. Good default choice for nurses, allied health workers and social workers moving to Australia. → hesta.com.au

REST Super

Originally for retail workers. Open to all. One of the largest industry funds by membership. Popular with younger and casual workers given its simplicity and accessibility. → rest.com.au

Vanguard Super

Launched in 2023 — the newest major fund. Run by Vanguard (the global index fund giant). Offers some of Australia’s lowest fees for index-based investing. No legacy insurance or complex product structures. Ideal for migrants who are familiar with Vanguard’s index investing philosophy from the UK or US. → vanguard.com.au/super

Superhero Super

Australia’s most modern fintech-based super product — you can invest your super directly in ASX shares and ETFs from the app, without setting up an SMSF. Administration capped at AUD $5/month for balances under AUD $50,000. Best for younger, financially engaged migrants who want more control and prefer to manage their super and share portfolio in one place. Fee competitiveness narrows above AUD $100,000 — check the PDS. → superhero.com.au/superannuation

---

For sectors and industries:

Sector	Recommended fund
Healthcare and nursing	HESTA or AustralianSuper
Construction and trades	Cbus
Education and universities	UniSuper
Hospitality and tourism	Hostplus
Government / public sector	Australian Retirement Trust or Aware Super
Retail	REST Super
All others / general	AustralianSuper, Hostplus or Australian Retirement Trust

How to compare: Use the ATO’s free YourSuper comparison tool at ato.gov.au/yoursuper — it compares all MySuper (default) products by 7-year net return and fees at your balance level. For a broader comparison including choice investment options, Canstar, Finder and SuperRatings publish detailed annual rankings.

---

Your super fund invests your contributions in a range of assets — typically shares, property, bonds and cash — across a spectrum of risk profiles.

Most funds offer several investment options:

Option	Typical assets	Risk level	Best for
High growth	80-100% shares	High	Decades until retirement
Balanced (default)	60-70% shares, rest in bonds/property	Medium	Most workers
Conservative	30-40% shares, rest in low-risk assets	Low	Near retirement
Cash	Cash and term deposits	Very low	Short-term in Australia

For migrants who plan to return home within a few years: A more conservative or cash option may reduce the risk of market volatility affecting your balance before you claim DASP. Financial advice specific to your situation is worth seeking.

---

Super and tax

Inside a super fund, your money is taxed at concessional rates — lower than normal income tax rates in most cases.

• Employer contributions (concessional): Taxed at 15% inside the fund — significantly lower than most workers’ marginal income tax rates
• Investment returns inside the fund: Taxed at 15% (or 10% for long-term capital gains)
• Withdrawals at retirement: Generally tax-free after age 60 for Australian residents

The concessional contributions cap is AUD $32,500 for 2026-27 (up from AUD $30,000 in 2025-26). This includes employer SG contributions plus any salary sacrifice you make voluntarily. Exceeding the cap has tax consequences.

---

Checking and consolidating your super

How to check your super balance

1. Log in to your super fund via their app or website
2. Check via myGov: Link your ATO account at my.gov.au — the ATO shows all your super accounts and recent contributions
3. ATO Super portal: Confirm contributions are arriving after each pay cycle (especially important under Payday Super from July 2026)

Lost and multiple super accounts

If you have worked in Australia before, you may have multiple super accounts — many migrants have super from previous jobs that they have forgotten about. Multiple accounts mean multiple sets of fees eroding your balance.

Consolidate your super: Log in to myGov, go to the ATO section, and use the “transfer super” feature to roll all accounts into one. This takes a few minutes and can save thousands in fees over time.

The ATO also holds lost super — super that employers paid into accounts that became inactive. Check ato.gov.au/super to see if any lost super is held in your name.

---

Super for migrants on temporary visas

Super applies to temporary visa holders in exactly the same way as permanent residents and citizens. If you work in Australia and meet the age and earnings thresholds, your employer must pay super — regardless of your visa type.

Important distinction: You cannot access your super while you are still working in Australia, regardless of your visa type. Super is locked away until either retirement age (preservation age, currently 60) or departure from Australia permanently on a temporary visa.

---

Departing Australia Superannuation Payment (DASP)

If you held a temporary visa and you have permanently left Australia, you can claim your super back through the Departing Australia Superannuation Payment (DASP).

Eligibility:

• You held a temporary visa (working holiday, student, skilled temporary, etc.)
• Your visa has been cancelled or has expired
• You have departed Australia

Not eligible for DASP: New Zealand citizens and Australian permanent residents are not eligible — their super must remain in the fund until retirement.

How to apply: Apply at ato.gov.au/dasp — online applications typically process within 28 days.

Tax on DASP:

Visa type	DASP tax rate
Working holiday (417/462)	65%
All other temporary visas	35%

The 65% rate for working holiday makers was increased in 2017 as a revenue measure. It is a significant deduction — but the balance remaining after tax is still money you are entitled to, so always claim it.

Timing: Apply after you have left Australia and after your visa has been cancelled or expired. You can apply up to two years after departure.

---

Salary sacrifice — voluntary additional contributions

In addition to your employer’s mandatory 12% SG contributions, you can voluntarily contribute more to super from your pre-tax salary — known as salary sacrifice.

Salary sacrifice contributions are taxed at 15% inside the fund rather than your marginal income tax rate. For most workers earning above AUD $45,000, this is a tax saving.

Example: If you earn AUD $100,000 and salary sacrifice AUD $10,000 into super, you pay 15% tax on that AUD $10,000 (AUD $1,500) rather than 32.5% (AUD $3,250) — a saving of AUD $1,750.

For migrants planning to claim DASP: Additional voluntary contributions will also be subject to the DASP tax rate when you leave. Factor this in before making large voluntary contributions if your stay is temporary.

---

Super and your tax return

Employer super contributions do not appear on your income tax return — they are paid separately and taxed within the fund. However, super affects your tax return in several ways:

• Salary sacrifice contributions must be reported
• After-tax (non-concessional) contributions may generate a tax offset in some circumstances
• Super co-contributions — if you earn below AUD $58,445 and make personal after-tax contributions, the government may contribute up to AUD $500 as a co-contribution

For full details on Australian tax for migrants, see: How to lodge your Australian tax return in 2026: a guide for migrants →

---

What happens to super if you die or become disabled?

Most super funds include default insurance cover:

• Life insurance (death cover): Pays a lump sum to your nominated beneficiaries
• Total and Permanent Disability (TPD) cover: Pays a lump sum if you cannot work permanently
• Income protection: Replaces a portion of your income if you cannot work temporarily

Nominate your beneficiaries: Log in to your super fund and nominate who receives your super if you die. Without a valid nomination, the fund trustee decides who receives the money — which may not be who you intend, particularly if your family is overseas.

A binding death benefit nomination is legally enforceable; a non-binding nomination is a guide only.

---

Super in plain numbers: what to expect

For a migrant earning AUD $75,000 per year:

	Amount
Annual salary	AUD $75,000
Super at 12% (employer, on top)	AUD $9,000 per year
Monthly super contribution	AUD $750
After 3 years (12% returns assumed, fees deducted)	Approximately AUD $27,000-$30,000

After three years, a temporary visa holder claiming DASP at 35% would receive approximately AUD $17,550-$19,500. After tax — still a meaningful amount.

---

FAQ’s (frequently asked questions)

---

This guide is for general information only and does not constitute financial or tax advice. Super rules and rates are subject to change — always verify current requirements at ato.gov.au or consult a registered financial adviser for your specific situation. Last updated July 2026.

Sources: Australian Taxation Office — Superannuation for individuals (ato.gov.au) | Wealthlab Financial Planners — How Superannuation Is Calculated in Australia 2026 | freshinaustralia.com — Superannuation in Australia 2026 | eduyush.com — Australian Superannuation for Migrants | settlemate.au — Australian Tax Guide for Migrants 2025-26