What is superannuation? A guide for working holiday makers

Superannuation — 'super' for short — is Australia's compulsory retirement savings system where your employer pays an extra 12% of your wages directly into a dedicated super fund on your behalf, on top of your take-home pay.

How super works for employees

The super guarantee (SG) rate for the 2025–26 financial year is 12% of your ordinary time earnings. It is paid by your employer in addition to your wages — it does not come out of your pocket or reduce your take-home pay. From 1 July 2026, employers are also required to pay super on each payday rather than quarterly.

• Your employer pays 12% of your ordinary time earnings into a super fund
• This is separate from and on top of your agreed wage or salary
• The money sits in the fund and is invested until you access it
• You choose a super fund when you start a job — if you do nothing, your employer picks a default fund

Why working holiday makers should care

Super is real money. If you earn AUD 1,000 a week for six months, around AUD 3,120 will be sitting in a super fund in your name by the time you leave. As a temporary resident, you cannot access it at retirement age — but you can claim most of it back.

Claiming super back: the DASP

Once your working holiday visa expires and you have left (or are about to leave) Australia permanently, you can claim your superannuation through the Departing Australia Superannuation Payment (DASP). For working holiday maker visa holders (subclass 417 and 462), the DASP withholding tax rate is 65% of the taxable component. That is a high tax hit — but the remaining 35% is still real money, and many travellers leave thousands of dollars unclaimed simply because they did not know about DASP.

• Apply via the ATO's online DASP application system after your visa has ceased
• Your super fund processes the payment and withholds the tax
• Allow several weeks for processing — the ATO recommends applying after you have left Australia
• If you worked across multiple jobs, you may have multiple super accounts

Avoid the multiple-fund trap

Every time you start a new job without nominating a fund, your employer may open a new default fund for you. Multiple small balances mean multiple sets of admin fees eating into your savings. When you start a new job, provide your existing super fund details on your tax file number declaration so contributions go to one place.

Where Tern fits

Tern is being built specifically for working holiday travellers. Alongside banking features, we are building tools to help you track your super balance, understand your DASP entitlement, and stay on top of the paperwork — so none of that 12% gets left behind when you move on.