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 us at Expat Taxes today.

Shane Macfarlane CA
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