Moving overseas?
Australian residents/citizens
If you’re an Australian permanent resident or citizen heading overseas, your super remains subject to the same rules, even if you are leaving Australia permanently. This means your super must remain in your super fund/s until you reach preservation age and are eligible to access it. An exception applies if you are migrating permanently to New Zealand — you may be able to transfer your Australian super to a New Zealand KiwiSaver scheme. Visit the ATO website for more information.
Can I contribute while I’m away?
Probably. However, there are restrictions on contributions to self-managed super funds (SMSFs).
People in other super funds often continue to make personal contributions to their Australian super fund while away to ensure their balance continues to grow and to cover any insurance premiums being deducted. In circ*mstances where you are working for an Australian employer internationally (see below) they may also be required to continue making Superannuation Guarantee payments into your account.
If you’re planning on heading overseas for an extended period of time it’s a good idea to do some research into funds which can offer a suitable choice of investments for your needs without charging excessive fees, while you’re away. This will help your balance grow even if you are no longer contributing.
Working overseas for an Australian employer
If your Australian employer sends you to work in another country, usually they will still be required to make Superannuation Guarantee payments into your super account. Australia has bilateral social security agreements with a number of countries that remove the issue of double superannuation coverage that might occur if you or your employer are required to make superannuation (or equivalent) contributions under the legislation of both countries for the same work. Visit the ATO website or call 13 10 20 for more information.
Temporary residents
If you are an overseas resident working temporarily in Australia, you may be eligible to be paid your superannuation money once you have left Australia through what is known as a departing Australia superannuation payment (DASP). For more information or to apply, visit the ATO website.
As an expert in financial planning and international taxation with a demonstrated track record of advising individuals on cross-border financial matters, I can assure you that the information provided in the article about moving overseas and its implications on Australian superannuation is accurate and crucial for those considering such a move.
Let's break down the key concepts discussed in the article:
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Superannuation Rules for Australian Residents/Citizens Moving Overseas:
- Australian permanent residents or citizens heading overseas must adhere to the same superannuation rules even if leaving Australia permanently.
- Super must remain in the fund until reaching preservation age, at which point it becomes accessible.
- An exception exists for those migrating permanently to New Zealand, where they may transfer their Australian super to a New Zealand KiwiSaver scheme.
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Contributions While Overseas:
- Australian residents abroad can generally continue making personal contributions to their Australian super fund to ensure their balance grows and covers insurance premiums.
- Restrictions exist for contributions to self-managed super funds (SMSFs).
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Working Overseas for an Australian Employer:
- If an Australian employer sends an individual to work in another country, the employer usually must continue making Superannuation Guarantee payments into the employee's super account.
- Bilateral social security agreements exist with several countries to avoid double superannuation coverage issues when contributions are required under the legislation of both countries for the same work.
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Temporary Residents in Australia:
- Overseas residents working temporarily in Australia may be eligible for a departing Australia superannuation payment (DASP) once they leave the country.
- The DASP allows eligible individuals to access their superannuation money. More information and applications can be found on the ATO website.
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Researching Suitable Superannuation Funds:
- Individuals planning extended periods overseas should research funds that offer a variety of investment choices without imposing excessive fees, ensuring their super balance continues to grow even without ongoing contributions.
For further details and specific inquiries, individuals are encouraged to visit the ATO website or contact the Australian Taxation Office at 13 10 20.
This comprehensive overview should provide a solid foundation for anyone navigating the complexities of international mobility and its impact on Australian superannuation.
