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

A superannuation fund is an investment vehicle that holds your retirement savings in Australia. Your employer contributes 11.5% of your wages into a super fund on your behalf, and those contributions are invested by the fund until you are eligible to access them. In Australia, there are hundreds of different super funds to choose from, ranging from large industry funds to retail funds operated by banks and financial institutions.

How to choose a fund as a working holiday maker

As a working holiday maker, the choice of fund matters less than it would for someone building retirement savings over decades. You will be withdrawing your super through DASP when you leave, so the primary considerations are access and simplicity rather than long-term investment performance.

A good approach is to choose a fund that has a straightforward online member portal, a good reputation for responding to queries, and experience dealing with DASP claims. Large industry funds such as those that cater to particular industries are generally well set up for this.

What happens if you do not nominate a fund

If you start a job and do not nominate a super fund, your employer will check whether you already have a super account linked to your TFN (called a stapled fund) and use that. If there is no stapled fund, they will pay contributions to their default fund. This is fine in practice, but it can result in you accumulating super across multiple funds if you work for several employers. The more funds you have, the more DASP applications you need to submit later.

Keeping things simple

If you are starting your first job in Australia, nominate a fund from the start and stick with it for all your jobs. Whenever you start a new job, provide the same fund details on your super nomination form. This keeps all your contributions in one place and makes your eventual DASP claim much simpler.

Need help?

Questions about your super?

We help working holiday makers understand their super situation and make sure they claim everything they are entitled to when they leave. Get in touch and we will help.