How Superannuation Works for International Students

When you start working in Australia as an international student, your employer will deduct money from your pay and put it into a superannuation account. It's mandatory, it's automatic, and it's not optional. This guide shows you how superannuation works, where your money actually goes, and what happens to it when you leave Australia.

This is general information only, not financial or tax advice. Afrovo is not a licensed financial adviser. Check the ATO or a licensed professional for your specific situation.

What Is Superannuation?

Superannuation (or "super") is a forced savings scheme designed to help Australians save for retirement. Your employer must contribute a percentage of your gross pay into a super fund. As of 1 July 2025, that rate is 12 per cent (and can increase by 0.5 per cent each year until it reaches 15 per cent). This money sits in an investment account registered in your name, and you cannot access it until you hit preservation age (currently 60 for most people).

It is not a bonus, a gift, or optional. It is part of your total pay package, and it comes straight out before tax.

How Much Gets Deducted?

Your employer contributes 12 per cent of your ordinary time earnings (your ordinary hourly rate, not including bonuses or loading). If you earn AUD $24.95 per hour (the national minimum wage from 1 July 2025), your super contribution would be roughly AUD $3.00 per hour. Over a 20-hour working week, that is AUD $60 going into super; over a year of work, around AUD $3,120.

You do not see this money in your bank account. It goes directly to a superannuation fund chosen by your employer. Some employers let you choose your own fund; others mandate one.

Step 1: Check Which Super Fund You Are In

Within a few weeks of starting work, your employer will tell you which super fund holds your money. Look at your payslip, or ask your HR or payroll team. The fund name and your account number will be listed there.

You do not need to do anything to "open" a super account. Your employer sets it up for you. But you do need to know which fund you are in, because you will need this information later if you want to consolidate accounts or check your balance.

Step 2: Find Your Super Fund Online

Most super funds have a public website where you can search for your account. Go to the fund's website and look for a login portal or a "member services" link. You will usually need your date of birth, your name, and your email address to set up a login.

Once logged in, you can see:

• •Your current balance
• •How your money is invested (the "investment option")
• •Any fees charged
• •Your contribution history

If you cannot find your account, call the super fund directly. They are required by law to help you locate it.

Step 3: Understand Where Your Money Is Invested

Your 12 per cent is not sitting in a savings account earning interest. It is being invested in stocks, bonds, property, or other assets, depending on the investment option your fund (or your employer) has chosen for you.

Common investment options include:

• •Balanced: A mix of shares, fixed income and property. Moderate risk, moderate potential return.
• •Growth: Mostly shares. Higher risk, higher potential return over time.
• •Conservative: Mostly bonds and fixed income. Lower risk, lower returns.
• •MySuper: A default option set by the fund if you do not choose. Usually balanced or growth.

You can usually change your investment option online through the fund's member portal. If you are 25 and have 40 years until retirement, a growth option might suit you. If you are risk-averse, a balanced option may feel better.

Do not panic about short-term ups and downs. Super is a long-term account. Markets fluctuate, but over decades, diversified investment portfolios historically grow.

Step 4: Check Your Payslip for Super Details

Every time you are paid, your payslip should show the super contribution. Look for a line that says "superannuation" or "employer super contribution". It will show the amount (usually around 12 per cent of your gross pay).

Your payslip should also show:

• •Your gross pay (before tax and super)
• •Your super contribution amount
• •Your net pay (what you actually receive in your bank account after tax and super)

If super is not listed on your payslip, tell your employer immediately. They are legally required to contribute.

Step 5: Watch for Multiple Super Accounts

If you have worked for more than one employer, or changed jobs, you might have more than one super account. Having multiple accounts costs you more in fees (each fund charges admin fees), so it is worth consolidating them into one.

To find out how many accounts you have, ask each former employer, or log into the Australian Tax Office's (ATO's) MyTax portal using your Tax File Number (TFN). The ATO has a register of super accounts linked to your TFN.

To consolidate, contact your preferred super fund and ask them to consolidate your other accounts into that one. They will guide you through the paperwork. Do this once a year to avoid losing track of money.

Step 6: Know the Rules for International Students

As an international student on a subclass 500 visa, super contributions are mandatory, just as they are for Australian citizens and permanent residents. You cannot opt out.

However, there is a crucial rule: you cannot withdraw your super while you are in Australia on a student visa, even after you leave your job. Your money stays locked in the fund until you meet a "condition of release", usually when you turn 60, or in rare cases, when you permanently leave Australia.

If you leave Australia permanently (your visa expires and you do not return), you may be able to claim your super through a process called a "departing Australia superannuation payment" (DASP). Your super fund can explain this when the time comes.

Step 7: Track Your Total Super Over Time

When you change jobs, or at the end of each financial year (30 June), log into your super fund's member portal and write down your balance. Keep a simple spreadsheet. This is your money; it is worth watching it grow.

If you work full-time during semester breaks or part-time during term (up to 48 hours per fortnight), every hour adds to your super. Over three years of study, a part-time worker contributing 12 per cent can accumulate AUD $8,000 to AUD $12,000 in super.

Step 8: Understand Super Fees

Super funds charge fees to cover administration, investment management, and insurance. These can range from 0.5 per cent to 1.5 per cent of your balance per year. Over time, high fees erode your balance.

When you log into your super account, look for the "Product Disclosure Statement" (PDS) or "fees" section. Compare fees across funds if you are unhappy. You can switch funds (usually for free) if another fund is cheaper or aligns better with your values.

For more detail on super fees and how to compare, visit ASIC MoneySmart.

Scam Alert: Super Scams

Criminals sometimes contact people claiming they can "release" their super early or promising high returns. These are scams. Your super cannot be released early (unless you meet a strict legal condition). Never give your super fund details, your TFN, or money to someone claiming they can unlock your super. If you are unsure, contact your super fund directly using the phone number on their official website, not a number provided by the caller.

FAQ

Q: Can I access my super while I am still studying?

A: No. Your super is locked until you meet a condition of release. For most people, that is turning 60. International students cannot withdraw super while on a student visa.

Q: What happens to my super when my visa expires?

A: When you permanently leave Australia, you may apply for a departing Australia superannuation payment (DASP). Your super fund will provide the forms and guide you through the process. You will receive your balance minus tax (typically 35 per cent for international students). This can take several weeks.

Q: Do I need to lodge a tax return if I only worked part-time?

A: You may need to, depending on how much you earned and whether super was deducted. As a general rule, if you earned below the tax-free threshold (AUD $18,200 in the 2025-26 tax year) and had no other income, you may not need to lodge. But you might still be entitled to a tax refund if tax was taken out of your pay. Lodge a return to claim that back. For your specific situation, check the ATO website or contact a tax agent.

Q: Can I choose a different super fund?

A: Yes. You can ask your employer to direct your super to a different fund (though some employers have a preferred fund). Or you can consolidate your existing super into a different fund by contacting the new fund. Do this if you want lower fees or an investment option that suits you better.

Q: Why is super so much money per year?

A: It is designed to help you save for retirement. Over 40 years of work, 12 per cent contributions grow substantially through compound investment returns. It is a long-term safety net, not a short-term savings account.

Summary

Superannuation is automatic, mandatory, and yours. Your employer contributes 12 per cent of your pay into an investment account registered in your name. You cannot access it while on a student visa, but you can track it, choose how it is invested, and consolidate multiple accounts to save on fees. When you permanently leave Australia, you can apply to withdraw it (minus tax). For more on managing your super and other student finances, head to the Afrovo student finance hub and check out ASIC MoneySmart for official guidance on investment options and fees.