Some people end up with a super account without ever choosing one. They start a job, the employer pays into whatever fund it uses, and the account simply appears. That works until you change jobs or take a close look at the fees. Knowing how to open a superannuation account in Australia yourself puts you in charge of where your employer’s money goes.
The order matters: pick a fund first, get your details together, apply, choose your investments and insurance, tell your employer, and only then tidy up any old accounts.
Step 1: Choose how to open a superannuation account in Australia
You can choose a fund yourself or accept your employer’s default. The default isn’t guaranteed to suit you, so compare before you say yes. Industry funds are run for their members and often have lower overheads. Retail funds can offer a wider selection of investments and more personalised options, though that choice can come with higher management fees.
| Fund type | Main feature | Watch for |
|---|---|---|
| Industry fund | Run for its members | Often lower overheads |
| Retail fund | A wider selection of investments and more personalised options | Can come with higher management fees |
| Employer or corporate plan | Offered by some employers for staff only | Your next employer may not be able to pay into it after you leave |
Fees pay for running your account, investing your balance and any services you use, such as general advice by phone or online chat, plus online tools. They can differ a lot between funds, so check the fee details for your current fund and for each one you’re considering. Fees come out of your balance whatever the markets do, and every dollar spent there stops growing for your retirement. If your current fund charges well above the alternatives, weigh that against the returns and features you get, and switch if it doesn’t justify the extra cost.
Some employers have their own fund, or a corporate plan inside a larger fund, for staff only. That’s the catch with a staff-only plan: once you leave, your next employer may not be able to pay into it. Step 6 covers what to do with an old staff plan.
Look at investment performance as well as fees. If your fund’s long-term returns trail other funds, that’s a fair reason to switch. Compare over five, seven or even 10 years, depending on how far off retirement is, because a longer window smooths out a few lucky or unlucky years. Past performance still doesn’t guarantee future returns.
Step 2: Prepare required personal details
Start with your tax file number (TFN). Your fund uses it to apply the right tax rate to your contributions. It also lets the fund search for other super accounts you may hold and ask whether you’d like to roll them into the new one. Step 3 covers the other details funds ask for.
A fund that doesn’t have your TFN has to tax your employer contributions at the highest marginal rate instead of the lower concessional rate, which is generally 15%. You can open an account without your TFN to hand and give it to the fund afterwards, but don’t leave it long, because the higher tax can apply in the meantime.
Step 3: Apply online to open a superannuation account
Most funds let you join online, so this is usually the quick part. Go to the fund’s own website, find its join or application page and complete the form. Check the address in your browser before you type in your TFN or ID. It should be the fund’s real site, not a link from an unexpected email or text.
Each fund’s form differs, but expect to be asked for your full name, date of birth, address and contact details, along with your TFN, identity documents and details of any super account you already have. Some also ask you to name who should receive your balance if you die.
Once your account is open it can receive contributions from your employer. Keep your member number somewhere safe, because your employer will want it along with the fund’s name in Step 5.
Step 4: Select investment and insurance options
Your investment option sets the balance between growth assets, such as shares and property, and safer holdings, such as fixed interest and cash. You can pick a single asset class, like Australian shares or cash, or combine assets with different risk levels. A ‘growth’ option puts most of your money in shares and property. A ‘conservative’ option keeps a much smaller share in those growth assets, with more in fixed interest and cash, and the exact mix varies by fund. If you want help with asset allocation and cover settings, a super adviser can walk you through it.
You don’t have to pick just one. A single account can be split across several strategies. Say you put 30% in a growth option and 20% in a conservative option, then put the remaining half in a cash option, all inside the same account.
Insurance deserves a look too. Some funds attach default cover to a new account, depending on your age and balance, and the premiums come out of your balance. Check what that cover includes, what it costs and whether you already have similar cover somewhere else. If you do, you may be paying twice for protection while your retirement savings shrink to cover it.
Step 5: Notify your employer
Your employer pays a percentage of your ordinary time earnings, which is what you earn for your ordinary hours of work, into a super fund on your behalf. That payment is the Super Guarantee contribution, and the Standard Choice form is how you tell your employer which fund should receive it. After you’ve chosen a fund, ask for the form and give your employer the fund’s name and your member number.
If you don’t give your employer the form, the default applies. When you start a job without naming a fund, your employer checks with the Australian Taxation Office (ATO) whether you have a stapled fund, which is an existing super account that follows you from job to job. If you have a stapled fund, your contributions go there. If you have none, they go into the employer’s default fund. Naming your own fund overrides both.
The Super Guarantee applies whether you work full-time, part-time or casual hours. Employers must pay it for employees aged 18 or over, and for employees under 18 who work more than 30 hours in a week.
Step 6: Consolidate existing super accounts
Say you’ve worked at a café, a shop and an office, and each paid into a different fund. You’re now carrying three sets of fees, and maybe three insurance premiums, for a single retirement. You can bring those accounts together in the fund you’ve chosen, but look at your insurance before you close or transfer anything.
An old staff plan needs a little extra care. If it sat inside a broader fund, you may be able to move into a standard account with that same fund. Check the administration and insurance costs first, because they can be very different from what your old corporate arrangement charged. If your old job had a fund just for its employees, you’ll need a new account with a different fund. Either way, list what the old arrangement gave you before you consolidate, because corporate and public sector funds can carry features that other funds don’t.
- Find your other accounts. Some funds let you search for your other super accounts on their website and guide you through consolidating them. Have the details of those accounts ready before you start. If you think you’ve lost track of one, run a lost superannuation search first.
- Complete a transfer form. Fill in a rollover or transfer form on your new fund’s website. The new fund then asks your old fund to send the money across.
- Check your insurance. Look at any cover, such as life insurance, that you have through your current fund. Closing the account can cancel the policies attached to it, so check whether your new account or a standalone policy would protect you well enough.
- Keep the old account open until replacement cover is active in the new fund. If you close or transfer it first, you may be left with no life or disability cover at all. The guide to consolidating super without losing cover goes through what to check.
Frequently asked questions
What is a super account?
It’s the account that collects your super: payments from your employer, plus any voluntary payments you make. Your fund invests the money, aiming to grow your retirement balance over time. Don’t treat it like a bank savings account, though. The balance rises and falls with the investment markets, and you can’t take the money out whenever you like.
Can you change your investment mix?
Yes, most funds let you choose from a menu of investment options and move between them, so the mix is up to you. Ask your fund whether switching costs anything before you move.
Do workers need a super account?
You don’t have to open one yourself, but you’ll end up with one. If you’re an employee, your employer generally has to pay super for you, and it needs an account to pay it into. Give them your own fund, or they’ll use your stapled fund or their default fund.
What happens if you do not choose a fund?
Your new employer checks whether you have a stapled fund. If you do, they pay into it. If you don’t, they put your contributions into their default fund. Step 5 covers the detail.
How do you find lost super?
Sign in to your myGov account, link the ATO, and use its lost super search. You can also call the ATO on 13 28 65. The guide to doing a lost superannuation search in Australia walks through it.
Conclusion
Choosing the fund takes longer than opening the account. Compare fees, performance and insurance first, then apply online with your TFN and ID to hand, and give your employer the fund’s details so they don’t use the default. The step people skip is the last one: check your insurance before you close an old account. Once you know how to open a superannuation account in Australia, you can keep one fund that follows you from job to job.
Explore More Topics: