superannuation contributions for australian expats

Superannuation contributions for Australian expats

If you’re planning on working overseas and you want to continue to make superannuation contributions in Australia, it’s important to understand the best way to proceed with this. While non-residents are eligible to make superannuation contributions there are rules relating to this. So that you can make a better-educated decision regarding your superannuation contributions, we’ve listed some of the rules you need to be aware of below:

Australian superannuation funds must retain residency for taxation purposes

It’s crucial that Australian superannuation funds have residency status when it comes to taxation, or else there is the possibility they’ll be fully taxable on any gains that the fund makes. So if you’re moving overseas and you’ll be gone for over 2 years, it’s important to seek professional advice on managing your fund. Some of these choices may include: organising personal representatives to replace you as trustees or moving to an APRA fund.

Notify funds before moving overseas

Before you move overseas you must notify your fund that you’re becoming a non-resident, as there are some funds – generally low-cost funds – that will not administer their services for non-residents. If this is the case, then you will need to arrange to rollover your funds into a more suitable alternative.

Check if your employer fund has provisions for non-residents

If your employer has decided to transfer you overseas there is often a provision in their superannuation fund for non-resident members. But it’s important to be aware that your employer may be unable to make superannuation contributions for you if:

– As an employee, you are a non-resident for Australian taxation purposes
– The company or employing entity that you are employed by are a non-resident in Australia for the purposes of taxation.

Transferring investments into an Australian superannuation fund

Depending on the investments you have, if you are moving overseas, it would be worthwhile to see if it is possible and practical to be able to transfer these “in specie” over to an Australian fund.

If you need some assistance with Australian superannuation contribution advice when moving overseas, contact our Australian chartered accountants today.

Shane Macfarlane
Follow me

Shane Macfarlane

CEO & Founder at Expat Tax Services
Shane's an Australian Chartered Accountant and Australian expat tax specialist who's also an expat himself (based in Asia).Shane's passionate about tax and legitimate tax minimisation, particularly as it relates to Australian expats who are often subject to high rates of tax back home in Australia.Beyond tax and accounting, Shane's an entrepreneur, having devised, created and founded a successful accounting startup, Fifo Workpapers (acquired by accounting software giant, Intuit inc. in 2013)

In short Shane's a tax and software techno-geek, who recognised that Australian expats were unable to obtain the specialist advice and quality service, that they needed from their accountants. Accordingly, Shane founded Expat Tax Services to provide Australian expats with access to specialist, quality advice at fair and reasonable prices (no hourly rates, fees quoted upfront with unlimited support included) . . . receive the support and advice you need without having to take second-mortgage to pay your accountant's bill! Speak to Shane & the team today.
Shane Macfarlane
Follow me

Leave a Reply

Your email address will not be published. Required fields are marked *