Superannuation Explained for Indian NRIs in Australia

How Australia's mandatory employer superannuation system works for Indian professionals — contribution rates, fund selection, DASP on departure, and India-side FEMA implications.

Overview

Superannuation is Australia''s compulsory retirement savings system. Employer contributions from day one.

How the Superannuation Guarantee Works

SG is legislated minimum employer contribution on ordinary-time earnings. Paid quarterly.

Choosing a Superannuation Fund

Industry super funds, retail super funds, corporate funds, SMSFs. Compare using ATO YourSuper tool.

Contributions and Taxation

Concessional contributions taxed at 15% within the fund.

DASP — Departing Australia Superannuation Payment

Available to temporary visa holders who depart permanently and visa has ceased. Apply online via ATO.

Tax File Number and Superannuation

Without TFN, fund deducts at 47% instead of 15%.

India-Side Implications

DTAA does not exempt DASP from Australian withholding tax. DASP proceeds can go to NRE account.

Key Takeaways

• SG contributions are employer obligation, paid on top of salary
• Nominate a low-fee super fund within first weeks
• DASP available upon permanent departure after visa ceases