Why understanding how Superannuation works when moving to or living in Australia is so important. One of the most important aspects of financial planning you’ll come across is superannuation (often called “super”). It’s Australia’s retirement savings system, designed to help people build financial security for life after work.
What is Superannuation?
Superannuation is money put aside during your working life to support you in retirement. Employers are generally required to pay a percentage of your salary into a super fund on your behalf. These contributions are then invested by the fund to grow over time.
As of 2025, the Superannuation Guarantee (SG) requires employers to contribute 11.5% of an employee’s ordinary earnings into super. This rate will gradually increase to 12% by 2026.
Who Gets Superannuation?
Employees: Most employees over 18, and some under 18 who work a certain number of hours, are entitled to employer contributions.
Contractors: In some cases, contractors may also be entitled to super if they are working mainly for one company and paid mostly for their labour.
Temporary Residents: If you’re in Australia on a temporary visa and you work, you’ll likely receive super contributions. When you leave Australia permanently, you may be able to claim your super back through the Departing Australia Superannuation Payment (DASP).
Why Superannuation Matters
Long-term savings: Super grows over your career through employer contributions, personal contributions, and investment earnings.
Tax benefits: Super contributions are taxed at a lower rate (usually 15%), which can make it a tax-effective way to save.
Retirement security: Having super helps reduce reliance on the Age Pension and ensures more comfort in retirement.
Choosing a Super Fund
There are many super funds in Australia, ranging from industry funds to retail funds and self-managed super funds (SMSFs). Each fund offers different fees, investment options, and features. Choosing the right one can make a big difference to your balance over time.
How MOR Relocation Can Help
For newcomers to Australia, superannuation can feel confusing—especially with so many fund options and rules around contributions and access. At MOR Relocation, we guide our clients through the basics of the superannuation system and connect you with trusted financial professionals in our network who can help you set up or consolidate your super, so you don’t miss out on your entitlements.
Final Thoughts
Superannuation is more than just a retirement account—it’s a cornerstone of financial planning in Australia. Understanding how it works now can help you maximise your future wealth and make smarter decisions while you’re working here.
