What is a superannuation fund and how do you choose one?

What is a superannuation fund?

A super fund is an investment vehicle that holds your retirement savings in Australia. Key facts:

• Your employer contributes 12% of your wages into the fund (on top of your pay, not deducted)
• The fund invests those contributions on your behalf
• The balance grows over time through contributions and investment returns
• For working holiday makers, the balance is claimed back through DASP when you leave

Australia has hundreds of different super funds. As a working holiday maker, you do not need to research them in detail.

How should working holiday makers choose a fund?

Three practical considerations matter:

• Online access: a clear member portal where you can check your balance
• Reputation for handling DASP: some funds process DASP applications faster than others
• Simple identity verification: funds that handle international identity verification well

Large industry funds and major retail funds generally meet all three criteria. For working holiday makers, picking any well-known fund and using it consistently is the right approach.

What happens if you do not nominate a fund?

If you do not nominate a fund when starting a job:

1. Your employer checks for a "stapled fund" (any fund linked to your TFN from previous work)
2. If you have a stapled fund, contributions go there
3. If not, the employer uses their default fund

This is fine in practice, but it can result in super accumulating across multiple funds if you work for several employers. The more funds, the more DASP applications you need later (or the more consolidation work to combine them).

What is the simplest approach for working holiday makers?

The cleanest setup:

1. At your first job, nominate one fund (any major fund works)
2. At every subsequent job, give the same fund details on your super nomination form
3. All contributions end up in one place
4. When you leave Australia, one DASP application claims everything

If you have already accumulated super in multiple funds, we can help consolidate them or manage separate DASP applications. Get in touch with our team and we will work out the best path for your specific situation.