Superannuation and moving overseas
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.
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 circumstances 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.
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.
Reproduced with the permission of the The Association of Superannuation Funds of Australia Limited. This article was originally published at http://www.superguru.com.au/manage-your-super/moving-overseas
This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person. Past performance is not a reliable guide to future returns.
Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business, nor our Licensee take any responsibility for any action or any service provided by the author.