Should I open a new super fund account when changing visas?

 Author: EthanATO(Community Support)Community Support

9 Dec 2024

Hi @Fionnuala,

Thanks for posting!

There are strict laws around superannuation here, and when deciding whether you should open a new fund or not there is some important information to consider.

If you later leave Australia, you may be eligible to access your super through a Departing Australia Superannuation Payment (DASP). These payments are taxed at specific rates based on some factors within the fund (taxed and non-taxed components), but more importantly, if the fund holds any amounts that were contributed while you had a WHM visa. If there are any WHM super contributions in a fund, it will be taxed at 65%. If the fund does not contain any of these contributions, a lower tax rate applies. You can read more about this on our DASP page under the DASP Tax Rates section.

You can avoid the higher rate on your later contributions by creating a new fund and ensuring only non-WHM contributions are made to it. Keep in mind there can be a delay when your employer makes contributions. It may be a good idea to swap the superfunds after the final WHM contribution has been made (including a pay that contains hours worked on both visas). This also means that if you have two separate funds you cannot later combine them as this would combine your WHM contributions into the newer fund and would all then be taxed at the higher rate when withdrawn.

This can be a bit confusing, so please let us know if you have any questions.