Superannuation in Australia: the 12% Guarantee, Choosing a Fund, and What Temporary Residents Can Claim
Llandora·Updated 2026-10-14
⚠️ Disclaimer: For general information only — not tax, financial, legal, or medical advice. Figures may be outdated or incorrect; tax rules change frequently. Verify important decisions with the CRA/IRS or a qualified professional (for health topics, a licensed healthcare provider). You use this information at your own risk.
The short answer
Superannuation ("super") is Australia's compulsory retirement savings system — and it starts building from your first payslip. Your employer must pay an extra 12% of your ordinary earnings into a super fund on top of your salary (the Superannuation Guarantee, at 12% since 1 July 2025). This applies to temporary visa holders too, not just citizens and permanent residents. Here's how it works and what happens to the money if you leave.
The 12% guarantee: how it works
The SG rate is 12% of ordinary time earnings (your normal wages — not overtime at penalty rates), paid by your employer, on top of your salary. A AUD 80,000 salary means AUD 9,600 a year into super.
You're eligible if you're 18 or older (under 18s qualify working more than 30 hours a week). The old AUD 450-a-month minimum was removed years ago — even small earnings attract super.
Contributions are generally paid quarterly at minimum (many employers pay monthly).
Super is taxed concessionally: contributions are generally taxed at 15% inside the fund (rather than your marginal rate), which is why salary-sacrificing extra super can be tax-effective — get advice before doing this.
Choosing (or getting) a fund
If you don't choose, your employer pays into their default (stapled) fund. Since 2021, your super account is "stapled" to you — it follows you between jobs unless you actively choose otherwise, which stopped the old problem of accumulating a new account (and new fees) with every employer.
You can choose your own fund at any time. What to compare:
Fees — small percentage differences compound enormously over decades; compare the total annual fee on a comparable balance.
Investment options — most funds offer growth/balanced/conservative options plus a default MySuper product.
Insurance — many funds bundle default life/TPD/income-protection cover; check whether you're paying for insurance you don't need (or missing cover you do).
Performance — the regulator (APRA) publishes performance test results; funds that fail twice face restrictions.
Temporary residents: the DASP
Here's the part most 482/485/417 holders care about: you don't have to wait until retirement. When you permanently leave Australia, you can claim your super as a Departing Australia Superannuation Payment (DASP) — but it's taxed on the way out:
Component
Most temporary visas
Working holiday (417/462)
Tax-free component
0%
0%
Taxed element
35%
65%
Untaxed element
45%
65%
DASP conditions: you accumulated the super while on an eligible temporary visa, the visa has expired or been cancelled, you have left Australia with no other active Australian visa, and you are not an Australian/NZ citizen or permanent resident. You apply through the ATO's online DASP system after departing — it is not automatic.
The 65% working-holiday rate catches people out: if you held a 417/462 at any point while the super accrued, the higher rate applies to that portion.
Common mistakes
Ignoring super because "I'm leaving anyway." At 12%, two years on AUD 90,000 is AUD 21,600 before tax — worth claiming properly via DASP.
Multiple accounts. Check for lost super via myGov/ATO online and consolidate — each account charges fees.
Not nominating beneficiaries. A binding death benefit nomination decides who gets your super if you die; without one, the trustee decides.
Claiming DASP while still in Australia. You must have departed; applications from inside Australia fail the conditions.
Frequently asked questions
Can I access super early for hardship?
Early access is extremely limited (severe financial hardship, compassionate grounds) and temporary residents generally can't access it this way — DASP after departure is the mechanism.
Does my employer have to pay super if I'm on a 417?
Yes — temporary residents, including backpackers and working holiday makers, are entitled to SG if they meet the age/hours rules.
What about the First Home Super Saver Scheme?
The FHSSS lets first-home buyers withdraw voluntary super contributions for a deposit — but it's designed around permanent residency and Australian home purchase; temporary residents should get advice before relying on it.
I became a permanent resident — can I still claim DASP?
No. DASP is only for people who were temporary residents and have left. As a permanent resident, normal preservation rules apply (access generally at retirement age).
How long does a DASP claim take?
The ATO processes most straightforward DASP applications within about 28 days of receiving all information, but fund processing times vary — allow a couple of months and keep your details current.
Sources
Australian Taxation Office, Super guarantee: https://www.ato.gov.au/tax-rates-and-codes/key-superannuation-rates-and-thresholds/super-guarantee
Australian Taxation Office, Work out if you have to pay super: https://www.ato.gov.au/businesses-and-organisations/super-for-employers/work-out-if-you-have-to-pay-super
Settle AU, Superannuation for New Migrants: https://www.settleau.com.au/blog/superannuation-new-migrants-australia
This article is general information about Australian superannuation, not financial advice. Rates and DASP rules change — confirm on ato.gov.au and consider licensed financial advice for your situation.
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