How Superannuation Works for International Students in Australia

When you start working as an international student in Australia, your employer will automatically set aside money into a superannuation account. This is money on top of your normal pay, but it's not yours to touch yet. It can feel confusing at first because the rules are different from what you might know from home. This guide explains what superannuation is, where your money goes, and what you need to do.

Disclaimer: This is general information only, not financial or tax advice. Afrovo is not a licensed financial adviser. Confirm your situation with the ATO or a licensed professional.

What Is Superannuation?

Superannuation (often called "super") is a retirement savings system in Australia. Your employer must pay a percentage of your wages into a superannuation account, even though you don't see it in your take-home pay. As of 1 July 2024, the standard rate is 11.5% of your ordinary time earnings.

Think of it as forced long-term savings. You cannot access this money until you reach retirement age (which for most Australians is now 67, but the rules are different for international students). For you, super is not just savings - it's a system you need to understand before you leave Australia.

Step 1: Check That Your Employer Is Paying Super

Your first job is to make sure money is actually being set aside. Here's how:

1. 1.Ask your employer for a copy of your recent payslip. You can request this by email or in person at work.
2. 2.Look for a line that says "Superannuation contribution" or "Super contribution". It should show an amount (usually around 11.5% of your gross pay).
3. 3.If you see nothing, or if the amount looks wrong, tell your employer immediately. It is their legal duty to pay super.

For more detail on reading your payslip, visit the student finance hub or read our full payslip guide.

Step 2: Find Out Which Super Fund You Are In

Your employer doesn't keep your super. Instead, they send it to a superannuation fund - a company that looks after retirement savings for thousands of workers. You need to know which fund yours is in, because there are hundreds of them.

Look at your payslip again. It should say the name of the super fund (for example, "UniSuper", "REST", "AustralianSuper" or "Aware Super"). Write this down.

If your payslip does not show the fund name, ask your employer or the payroll team which fund they use for new employees.

Step 3: Register with Your Super Fund

Now that you know which fund you're in, create an online account:

1. 1.Go to the super fund's website (search the fund name online).
2. 2.Look for "Register" or "Create Account" or "Log In".
3. 3.Use your email address and create a strong password. You will need to provide your Tax File Number (TFN). If you don't have one yet, apply for a TFN first.
4. 4.Once you're logged in, you can see your account balance and the money being added each pay.

This is important: do not ignore this step. Your account exists whether or not you log in, but you cannot check your balance or make changes without an account.

Step 4: Understand the Rules for International Students

As an international student, you have different super rules than Australian residents. Here are the key points:

You cannot access your super while you study. Even after you graduate, you generally cannot withdraw it until you meet very specific conditions (see below).

You cannot rollover your super into Australia. If you worked abroad before coming to Australia, that super stays where it is.

Your employer must still pay it. Even though you can't touch it, they still contribute the full 11.5%.

Step 5: Know What Happens When You Leave Australia

This is the crucial part. When you permanently leave Australia, your super does not disappear - but you need to claim it. Here are your options:

Departing Australia Superannuation Payment (DASP)

If you've left Australia permanently and you're not an Australian resident, you can apply to withdraw your super as a lump sum. This usually happens 6 months after you leave Australia.

Here's the process:

1. 1.Check your visa status. You must no longer be an Australian resident for tax purposes.
2. 2.Contact your super fund and ask for a DASP form or Departure Benefit form.
3. 3.Complete the form with your personal details and overseas address.
4. 4.Submit it to your super fund. They will verify your residency status with the ATO.
5. 5.Once approved, your money is sent to your overseas bank account (usually within 4 weeks, but this varies by fund).

Beware of tax. When you claim your super, a 35% tax is typically taken out (this is the "super tax" for non-residents). For example, if your balance is AUD 5,000, you will receive around AUD 3,250 after tax. This is different from income tax, so check the exact amount with your fund before you leave.

For a detailed walkthrough, read our guide to claiming super when you leave Australia.

Stay and Work in Australia

If you get a graduate visa (subclass 485) or any other work visa, you can stay in Australia and your super continues to build. You will become an Australian resident for tax purposes, and your super will be locked until you reach retirement age.

Return to Australia

If you return to Australia to work on another visa in the future, your old super account may still exist. You can contact your old super fund to find out and potentially roll it into a new account.

Step 6: Avoid Lost Super

Many international students lose track of their super because they forget the fund name or lose contact details. Here's how to prevent this:

1. 1.Write down your fund name and account number in a document you keep safe (email it to yourself or save it in the cloud).
2. 2.Update your address with the fund every time you move, so you don't miss any statements.
3. 3.Check your super at least once a year by logging into your online account.
4. 4.Keep all payslips until you leave Australia, so you have proof of your contributions.

If you do lose track, you can search for lost super on the ATO website. Visit the ATO site and search "lost super".

Step 7: Be Careful of Scams

Scammers sometimes target international students with fake "super release" schemes. Here's what to watch for:

• •Do not believe anyone who says you can access your super early. There are very few legal reasons to release super before you leave Australia, and they are strict.
• •Do not pay anyone a fee to release your super. Your super fund will not charge you to help you.
• •Do not click links from emails claiming to be from your super fund. Go directly to the fund's official website by searching it yourself.
• •Do not give your super details to anyone who contacts you. If someone calls or emails asking for super information, hang up and contact your fund directly.

For more on scams, visit Scamwatch.

FAQ

Q: If I work 48 hours a fortnight while studying, does my employer still pay super on all of it?

A: Yes. Your employer must pay the superannuation guarantee (currently 11.5%) on all your ordinary time earnings, regardless of how many hours you work. Check your payslip to confirm.

Q: What if I work for multiple employers during my studies?

A: Each employer will set up their own super contribution, usually into separate funds. This means you could end up with multiple super accounts. This is legal but can be messy, so before you leave Australia, contact each fund and ask if you can consolidate them into one account. Having multiple accounts can also cost you in fees.

Q: Can I choose which super fund my employer pays into?

A: Sometimes, yes. Ask your employer if they offer "choice of fund". If they do, you can nominate a different fund. However, many employers use a default fund, and you cannot change it without a formal written request. It's usually not worth the effort unless the fees are very high.

Q: How much tax do I pay when I claim my super as a DASP?

A: The standard rate is 35% tax on the amount withdrawn. So if you have AUD 10,000, you will owe AUD 3,500 in tax, leaving you with AUD 6,500. This varies slightly by fund and circumstances, so check with your fund for the exact figure.

Q: What if I return to Australia on another visa after leaving? Do I get my old super back?

A: No. Once you claim your super as a DASP when you leave, it is gone. You cannot put it back. If you return to Australia and work again, you will start building new super from that date.

Summary

Superannuation is money your employer sets aside for you, automatically, every pay cycle. As an international student, you cannot touch it while you study, but you must understand where it is and how to claim it when you leave. The steps are simple: find your payslip, identify your super fund, create an account, and when you leave Australia, apply for a Departing Australia Superannuation Payment (DASP). Don't lose track of it, and watch out for scams.

For more guidance on managing your money as a student, visit the Afrovo student finance hub or check the ATO site for official information about super and your obligations.