Superannuation for Migrants: What to Consider

Superannuation for Migrants in Australia — What to Consider (2025 Guide)

If you’re moving to Australia to live and work, there’s a good chance your employer will start paying money into a retirement savings account called superannuation (“super”). Getting super right early can make a big difference to your long‑term wealth: you’ll avoid lost accounts and duplicate fees, pick the right investment option and insurance cover, and understand your rights—whether you hold a temporary visa, permanent residency or citizenship.

This guide explains how super works in Australia for new migrants and temporary residents, including who is entitled to employer contributions, how to choose and consolidate funds, the taxes and caps to know, how withdrawals work, and what changes if you later leave Australia. We also cover practical steps—Tax File Number (TFN), myGov setup, super “stapling”, insurance and investment choices—and common traps to avoid.

Authoritative resources referenced throughout include the ATO’s pages on how super works, Super Guarantee (employer contributions), find lost super, and tax on super benefits. For plain‑English explainers, see Moneysmart, and for employment rights (including unpaid super) visit the Fair Work Ombudsman.

What Superannuation Is (and Why It Matters)

Super is Australia’s compulsory retirement savings system. Your employer generally must pay a percentage of your ordinary time earnings into your chosen super fund (this is called the Super Guarantee, or SG). You can also contribute extra yourself. Money in super is invested (for example in shares, bonds, property and cash) with the goal of growing your balance for retirement.

You usually cannot access your super until you reach preservation age and retire, or meet special conditions (for example reaching age 65, permanent incapacity or terminal illness). Super is taxed differently to ordinary savings, and it can come with default life, total and permanent disability (TPD) and income‑protection insurance.

Who Is Entitled to Employer Super (SG) as a Migrant?

In most cases, if you are an employee working in Australia, your employer must pay SG into your super fund—regardless of whether you are a temporary resident, permanent resident or citizen. There are limited exceptions (for example, certain contractors, very short‑term work or employees under specific international agreements).

Check eligibility and the current SG rate at the ATO’s paying super contributions. If you suspect your employer isn’t paying, contact the Fair Work Ombudsman or use the ATO’s tools to recover unpaid super.

Your First Week Setup: TFN, myGov and Stapling

To make super painless, handle three admin tasks as soon as you start work: get a Tax File Number (TFN), set up your myGov account linked to the ATO, and choose a super fund (or confirm your ‘stapled’ fund).

Tax File Number (TFN)

• Apply online with the ATO or via Services Australia options depending on your visa. Giving your TFN to your super fund helps them accept contributions and apply the correct tax rate.

myGov (link the ATO)

• myGov is your secure portal for ATO services. After linking, you can see your super funds, balances, and whether any ‘lost’ or ATO‑held super exists in your name.

Super “stapling” and fund choice

• Under stapling rules, when you start a new job your existing super fund follows you, unless you actively choose a different fund. If you don’t have a fund yet, your employer may pay into their default fund. It’s worth taking the time to choose, because good fees, investment options and insurance can save/make thousands over time.

Learn how stapling works at Moneysmart and compare fund options using your fund’s Product Disclosure Statement (PDS) and dashboards.

How to Choose a Super Fund (and Investment Option)

Focus on four things: fees, long‑term performance for your investment option, insurance terms, and services (for example, digital tools, advice access). Most funds offer a MySuper default option plus a range of pre‑mixed (conservative/balanced/growth/high growth) and sector options. As a rule of thumb, your time to retirement and risk tolerance should guide your mix.

Fees and performance

• Lower ongoing fees leave more of your returns compounding. Compare long‑term net returns (after fees and taxes) for like‑for‑like options—don’t chase last year’s winner.

Insurance inside super

• Check default life, TPD and income protection: benefit amounts, waiting/benefit periods, exclusions for overseas travel or high‑risk jobs, and premium costs. Many migrants work in industries or roles where exclusions apply—understand the fine print and apply for tailored cover if needed.

Consolidating (Rollover) and Finding Lost Super

If you’ve had casual or short‑term jobs, you might already have more than one super account. Multiple accounts mean duplicated fees and insurance premiums. Use myGov to search for lost or ATO‑held super and consolidate into your chosen main fund. Be careful to review any insurance cover you’ll lose before you roll out of a fund—replace essential cover first.

Follow the ATO steps to find lost super and ATO‑held super.

Adding More: Contribution Types, Caps and Tax

Beyond your employer’s SG payments, you can put extra into super in two ways—concessional (before‑tax) and non‑concessional (after‑tax). Caps limit how much you can contribute each year while keeping tax advantages.

Concessional (before‑tax) contributions

• Include salary sacrifice and personal contributions you claim as a tax deduction. From 1 July 2024 the concessional cap is $30,000 per financial year (including employer SG). Contributions are generally taxed at 15% in the fund (an additional 15% may apply for very high incomes under Division 293).

Non‑concessional (after‑tax) contributions

• Generally capped at $120,000 per year, or up to $360,000 using the bring‑forward rule if you’re eligible and your total super balance permits. There’s no 15% contributions tax on non‑concessional amounts.

Government co‑contribution and spouse contribution tax offset

• If you earn under certain thresholds and make after‑tax contributions, you may receive a government co‑contribution. If your spouse has lower income, you may qualify for a spouse contribution tax offset. New migrants on lower incomes should check these incentives once they become tax residents.

See the ATO’s current contribution caps and co‑contribution pages.

When Can You Access Your Super?

You generally can’t take money out of super until you reach your preservation age and retire, or you turn 65 (even if still working). Other conditions of release include permanent incapacity and terminal medical condition. Severe financial hardship and compassionate grounds exist but are tightly defined.

Start with the ATO’s withdrawing and using your super overview.

If You’re a Temporary Resident: Getting Super Back When You Leave (DASP)

If you’re in Australia on a temporary visa (for example, international students or skilled temporary workers) and you leave Australia permanently, you may be able to claim your super as a Departing Australia Superannuation Payment (DASP). DASP generally isn’t available to permanent residents or citizens.

Check eligibility and how to apply at the ATO’s DASP page. Be aware different tax rates apply to DASP depending on your visa type and the components of your super.

Insurance in Super for Migrants (Life, TPD, Income Protection)

Default cover can be valuable, especially if you don’t yet have personal policies arranged. But moving country can affect cover: some policies exclude certain countries, high‑risk occupations or activities, or require you to notify the fund when you move. If you’re on a temporary visa, check whether cover continues while overseas travel occurs or after you return to your home country.

If you plan to consolidate funds, weigh the loss of existing cover against the benefits of lower fees or better investment options elsewhere. You can apply for replacement cover in your destination fund before rolling over.

Investing Your Super: Risk Level, Time Horizon and Currency Considerations

Your super should be invested according to your risk tolerance and time to retirement. If you’re decades away, growth‑oriented options may make sense; if you’re within 5–10 years, a more balanced or conservative approach might suit. Migrants sometimes plan to retire in another country—if so, consider the currency risk and the proportion of hedged vs unhedged international investments in your option.

How Super Benefits Are Taxed (Resident vs Non‑Resident)

If you’re an Australian tax resident, super benefits paid at age 60 or over from a taxed fund are generally tax‑free. Benefits paid before 60 can be taxed at concessional rates depending on components and conditions of release. If you’re a non‑resident for Australian tax when you draw from super, Australian tax rules still apply to the benefit, but your country of residence may also tax it. Double tax agreements can change the outcome—get advice before you move or withdraw.

Other Pathways You Might Use (FHSS, Downsizer Later On)

First Home Super Saver (FHSS). If you’re saving for your first home in Australia, you can make voluntary contributions to super and later withdraw eligible amounts to help with the deposit. This can be attractive for migrants who become tax residents and plan to buy. Make sure you meet the FHSS eligibility rules and timelines.

Downsizer contributions. Later in life, if you sell an eligible family home in Australia, you may be able to contribute a downsizer amount to super without counting against your non‑concessional cap. This is more relevant for long‑term residents or returning migrants who establish an Australian home.

Learn more: FHSS scheme and downsizer contributions.

Should Migrants Consider an SMSF?

SMSFs (self‑managed super funds) offer control and flexibility, but they come with strict trustee responsibilities and ongoing costs. For migrants, the bigger issue is residency: the fund’s central management and control must ordinarily be in Australia to remain complying, with only temporary absences allowed. If you expect to live overseas for extended periods, an SMSF may be impractical—consider an APRA‑regulated fund instead.

See the ATO’s notes on SMSF residency.

Common Traps for Migrants (and How to Avoid Them)

• Starting a new job without nominating a fund—ending up with multiple small accounts and fees. Use stapling or nominate your preferred fund on Day 1.
• Not giving a TFN to your super fund—this can affect contributions and tax treatment.
• Assuming you’re not entitled to SG because you’re on a temporary visa—many temporary residents do qualify. Check and chase missing payments.
• Rolling over without checking insurance—some lose valuable cover with medical loading or exclusions that can’t be replaced easily.
• Exceeding contribution caps—especially if you salary sacrifice and your employer’s SG pushes you over the limit.
• Expecting to access super when you leave Australia as a permanent resident or citizen—DASP is for temporary residents only.
• Ignoring currency risk and leaving everything in a high‑volatility option right up to retirement.

If You Plan to Settle Long‑Term: Super and the Age Pension

If you stay in Australia into retirement, the Age Pension means tests will apply to your savings and income. Account‑based pensions are generally deemed for the income test and balances count under the assets test. Structuring your retirement income well ahead of time can improve outcomes, especially if you’re close to eligibility thresholds.

Start with the Services Australia guides to the assets test and income test.

Practical Checklists

New to Australia (first 30 days)

• Apply for a TFN and set up myGov; link the ATO services.
• Choose a super fund (or confirm your stapled fund) and give details to your employer before your first pay cycle.
• Provide your TFN to the fund; set up your online member portal and update contact details.
• Read your fund’s PDS, fees, investment choices and insurance terms; choose an appropriate option.
• If you already worked a casual job, check myGov for more than one super account—consolidate after reviewing insurance.

During the first year

• Check SG payments are arriving at least quarterly; chase any missed contributions promptly.
• Consider salary sacrifice or personal deductible contributions if tax‑effective and within caps.
• Review whether you’re eligible for the government co‑contribution or spouse contribution offset.
• Revisit your investment option after your probation/settling‑in period to ensure it still fits your goals.

Longer‑term planning

• If you intend to buy a home in Australia, explore FHSS for deposit saving.
• If you might move overseas again, understand DASP (temporary residents) and super tax when non‑resident.
• As retirement approaches, plan a transition to retirement and retirement‑phase income strategy, and model Age Pension impacts.

Need Personalised Help With Your Super as a New Migrant?

We help migrants choose the right fund and insurance, set up contributions, and build a plan that fits your visa status and goals. Book a discovery call or explore these resources: Financial Planning & Investment Advice • Using Super Contributions to Reduce Taxable Income • Free Online Financial Calculators • First Home Super Saver (FHSS) + Salary Sacrifice Guide

General information only. This guide does not consider your objectives, financial situation or needs. Super, tax and immigration rules change—always check the ATO, Services Australia and Fair Work resources linked above and seek personal advice before acting.