How Super Works
Superannuation ensures Australians save enough for a comfortable retirement. Your super grows over time with employer contributions, voluntary contributions you make, and investment returns. Employers must pay super into your account at least every quarter.
What is Super?
Superannuation (super) is Australia's compulsory retirement savings system. Your employer must pay 11.5% of your salary into a super fund on top of your regular pay. This money is invested and grows over your working life. You generally cannot access it until you reach preservation age (currently 60). Super is one of Australia's best financial features for long-term residents.
Choosing the Best Super Fund
You can choose your own super fund or use your employer's default. Key factors: Fees — look for total fees under 1% per year. Performance — compare 5-10 year returns. Insurance — most funds include basic life and disability insurance. Top-rated funds include AustralianSuper, Hostplus, UniSuper, and Sunsuper. Industry funds (non-profit) generally outperform retail funds (bank-owned) after fees.
Consolidating Multiple Super Accounts
If you have worked multiple jobs, you may have multiple super accounts each charging fees. Consolidate them into one account using myGov linked to the ATO. This saves hundreds in duplicate fees. Before consolidating, check if any account has insurance you want to keep, as closing an account cancels its insurance.
Leaving Australia Permanently?
Temporary visa holders who leave Australia permanently can claim their super as a Departing Australia Superannuation Payment (DASP). Apply through the ATO after your visa has expired or been cancelled and you have left Australia. Note: DASP is taxed at 35-45% depending on the components. This is a significant amount of money many Chinese workers forget to claim when returning to China.