Superannuation Basics: What Migrants Need to Know in Australia

When you start work in Australia, your employer will begin paying money into a superannuation account on your behalf. This is not optional. Superannuation is a mandatory retirement savings scheme that applies to most workers, including temporary visa holders. If you're a migrant earning a salary, understanding how superannuation works is essential to your financial planning in Australia.

The core question most migrants face is simple: what happens to this money, when do I get it, and how much should I expect? This guide answers those questions directly.

Who Gets Superannuation in Australia

If you're over 18 years old and working in Australia, you're entitled to receive superannuation contributions from your employer. This applies regardless of your visa status. Temporary residents on working holiday visas, skilled migration visas, student visas with work rights, and other temporary visas all qualify.

The only common exceptions are:

  • You earn less than $11,800 per year (the super guarantee threshold).
  • You're under 18 years old.
  • You work for a non-profit organisation that has chosen not to pay super (rare).
  • You're a contractor or self-employed (you may need to arrange your own).

Most employees in Australia receive superannuation automatically. Your employer is legally required to pay it.

How Much Your Employer Must Pay

As of 1 July 2026, the Superannuation Guarantee (SG) rate is 12%. This means your employer must contribute 12% of your qualifying earnings into your superannuation account each quarter.

Qualifying earnings include your ordinary time earnings (base salary and ordinary allowances), but exclude overtime, bonuses, and some other payments. If you earn $60,000 per year, your employer must contribute $7,200 annually into super. That's $1,800 per quarter.

The maximum contribution base for 2026-27 is $270,830. Once your annual earnings reach this threshold, your employer can stop paying SG contributions for that financial year. This only affects high earners.

From 1 July 2026, employers must pay your super contributions at the same time they pay your salary and wages. Previously, there was a three-month delay. This change means your super is funded faster.

When You Can Access Your Superannuation

This is where superannuation differs from a regular savings account. You cannot withdraw your super whenever you want. The money is locked away until you reach preservation age, which is between 55 and 60 depending on your date of birth.

If you're leaving Australia permanently, the rules are different. Temporary visa holders who depart Australia can apply to withdraw their superannuation under the Temporary Resident's Tax Offset (TRTO) scheme. You must have left Australia and not be eligible for a visa that would allow you to stay or return. The ATO processes these applications, and you'll receive your balance minus tax.

If you're a permanent resident or Australian citizen, your super stays in Australia and grows until you reach preservation age. You cannot take it with you if you move overseas.

Superannuation Contribution Caps and Tax

Most superannuation contributions are taxed at 15%, which is lower than the personal income tax rate for most workers. This is one reason why super is encouraged in Australia.

For 2026-27, the concessional contributions cap (the amount you and your employer can contribute with tax concessions) is $32,500 per year. The non-concessional contributions cap (contributions you make from after-tax income) is $130,000 per year. Most migrants don't need to worry about these caps unless they earn a very high salary or make voluntary contributions.

If you exceed the caps, you'll pay additional tax on the excess amount. The ATO tracks your contributions and will notify you if you go over.

What Happens to Your Super When You Change Jobs

Your superannuation account stays with you when you change employers. You don't lose it. Each employer you work for will contribute to your account (or you can ask them to pay into an existing account you choose).

You can consolidate multiple super accounts into one if you have worked for several employers. This reduces fees and makes it easier to track your balance. You can request this through your super fund or ask your new employer to help.

Some super funds charge fees for inactive accounts or accounts with low balances. If you have multiple old accounts from previous jobs, consolidating them can save you money in fees over time.

Choosing Your Superannuation Fund

When you start a new job, your employer will assign you to a default super fund unless you choose your own. You have the right to choose a different fund, but you must tell your employer in writing.

When selecting a fund, compare:

  • Annual fees (usually 0.5% to 1.5% of your balance).
  • Investment options (growth, balanced, conservative).
  • Insurance options (life, disability, income protection).
  • Performance history (how well the fund has performed over 5 and 10 years).

The ATO's MySuper comparison tool and Moneysmart.gov.au provide independent information on super funds. You can compare fees and performance before choosing.

If you're young and have a long time until retirement, a growth-focused option may suit you. If you're closer to retirement age, a more conservative option protects your balance from market volatility.

Tracking Your Superannuation Balance

You can check your super balance online through your fund's website or app. Most funds provide a member portal where you log in with your email and password.

You can also check your total super balance across all your accounts using the ATO's online services. Log in with your myGov account and view your super information. This is useful if you have multiple accounts from different jobs.

Your employer must provide you with an annual statement showing their contributions. Keep these statements for your records.

Superannuation and Tax Returns

Superannuation contributions made by your employer are not included in your taxable income. They're concessional, meaning they're taxed at 15% within the fund rather than at your personal tax rate.

When you complete your tax return, you don't claim super contributions as a deduction (unless you're self-employed). The ATO tracks employer contributions automatically.

If you make voluntary contributions to super from your own after-tax income, you may be able to claim a tax deduction. Speak to a tax professional about whether this benefits you.

Superannuation for Self-Employed and Contractors

If you're self-employed or work as a contractor, you're not entitled to employer super contributions. You must arrange your own retirement savings. Many self-employed people contribute to their own super account to receive the same tax benefits.

You can contribute to your super and claim a tax deduction, provided you meet certain conditions. The ATO website explains the rules for self-employed contributions.

Useful Official Sources

Frequently Asked Questions

Do temporary visa holders in Australia get superannuation?

Yes. If you're over 18 and earning above $11,800 per year, you're entitled to superannuation contributions from your employer, regardless of your visa status. This applies to working holiday visa holders, skilled temporary visa holders, and students with work rights.

What is the superannuation guarantee rate in Australia for 2026?

As of 1 July 2026, the superannuation guarantee rate is 12%. Your employer must contribute 12% of your qualifying earnings into your super account each quarter.

Can I withdraw my superannuation if I leave Australia?

If you're a temporary visa holder leaving Australia permanently, you can apply to withdraw your superannuation under the Temporary Resident's Tax Offset scheme. You must have left Australia and not be eligible to stay or return. Permanent residents and citizens cannot withdraw super until they reach preservation age (55-60).

When will my employer pay my superannuation contributions?

From 1 July 2026, employers must pay superannuation contributions at the same time they pay your salary and wages, rather than within three months. This means your super is funded faster.

What happens to my superannuation when I change jobs?

Your superannuation account stays with you. Each new employer will contribute to your account, or you can ask them to pay into an existing account. You can consolidate multiple accounts from different jobs into one to reduce fees.

Can I choose my own superannuation fund?

Yes. Your employer will assign you to a default fund, but you have the right to choose a different fund. You must tell your employer in writing. Compare funds based on fees, investment options, and performance before choosing.

How much tax do I pay on superannuation contributions?

Most superannuation contributions are taxed at 15%, which is lower than personal income tax rates. This tax is paid within the fund, not from your salary.

What is the superannuation contribution cap for 2026-27?

The concessional contributions cap is $32,500 per year, and the non-concessional contributions cap is $130,000 per year. Most workers don't exceed these limits unless they earn a very high salary or make large voluntary contributions.

This is general information only. It is not legal, migration, financial, tax, medical, or professional advice. Always check official sources before acting.