Info regarding withdrawing my Super at maturity, tax payable?

[Kenny202]

Just wondering if anyone has been in a similar position over the last few years and withdrew their super while living here. I have been living here 7 years and last year at 57 I became eligible to withdraw up to $200k of my super should I wish per m birth year. I think I can withdraw all at 60yo providing I don't plan to work in Australia again. One thing that has constantly gnawed at me is because I have been out of the country for over 2 years and own no property in Australia, I am a non resident for tax purposes person, which means I pay full whack tax on interest, income, investments in Australia.

 

I have been assured by the super company that there will be no tax payable on my super when I withdraw it but they took a lot of prodding and didn't seem to be very confident of their reply and kept referring me to my accountant who was in turn referring me back to them. My Super is bog standard employer contributions by the way. No salary sacrifice or anything unusual.

 

Apart from fees etc has anyone in my position withdrawn their super recently? Was there any taxes etc or your payout was pretty much what was in the fund less some sort of processing fees I imagine? Time comes to withdraw can it be done from Thailand? Hoping I wont need a trip back to Australia to get it transferred. Any advice or help appreciated.  

[gearbox]

You usually need to pay some tax if you withdraw before 60.

 

https://www.superguide.com.au/how-super-works/access-super-under-60-tax

 

Look here:

 

2. Over your preservation age but under 60

If you have other money it is best to wait:

 

https://www.superguide.com.au/how-super-works/access-super-over-60-tax-free

 

"When it comes to super, reaching age 60 triggers an important change. It means you can withdraw your super benefits more easily and, for most people, they are tax free."

 

 

 

[Kenny202]

29 minutes ago, gearbox said:

You usually need to pay some tax if you withdraw before 60.

 

https://www.superguide.com.au/how-super-works/access-super-under-60-tax

 

Look here:

 

2. Over your preservation age but under 60

If you have other money it is best to wait:

 

https://www.superguide.com.au/how-super-works/access-super-over-60-tax-free

 

"When it comes to super, reaching age 60 triggers an important change. It means you can withdraw your super benefits more easily and, for most people, they are tax free."

 

 

 

That is really great info thanks so much, Still a lot of smoke and mirrors. 

 

Sando will pay 0% tax on the taxable component – taxed element of his lump sum up to the low-rate cap (in 2021–22 the first $225,000 of his benefit). However, he will pay 17% on the remaining $75,000 of the taxable component – taxed element of his super, as this amount is over the low rate cap

 

Does this bare out what I was saying? I think last time I checked maybe a couple of years ago, you could draw out up to 200k if you were over preservation age but under 60....From what I understand I shouldn't have a taxable component at preservation age providing I only withdraw up to the cap. Would there likely be a taxable component on a bog standard employer super fund such as mine? 

 

[gearbox]

16 minutes ago, Kenny202 said:

That is really great info thanks so much, Still a lot of smoke and mirrors. 

 

Sando will pay 0% tax on the taxable component – taxed element of his lump sum up to the low-rate cap (in 2021–22 the first $225,000 of his benefit). However, he will pay 17% on the remaining $75,000 of the taxable component – taxed element of his super, as this amount is over the low rate cap

 

Does this bare out what I was saying? I think last time I checked maybe a couple of years ago, you could draw out up to 200k if you were over preservation age but under 60....From what I understand I shouldn't have a taxable component at preservation age providing I only withdraw up to the cap. Would there likely be a taxable component on a bog standard employer super fund such as mine? 

 

It depends on the structure of your super components. Your fund should be able to tell you what proportion is taxable etc.

 

In reality you probably don't need to pay tax for withdrawals of lump sums below the low cap.

 

The low-rate cap is the limit on the amount of taxable components (both taxed and untaxed elements) of a lump sum that can receive a lower (or nil) rate of tax. It applies to people who have reached their preservation age but are still aged under 60.

In 2021–22, the low-rate cap is $225,000.

Edited December 2, 2021 by gearbox

[Kenny202]

14 minutes ago, gearbox said:

It depends on the structure of your super components. Your fund should be able to tell you what proportion is taxable etc.

 

In reality you probably don't need to pay tax for withdrawals of lump sums below the low cap.

 

The low-rate cap is the limit on the amount of taxable components (both taxed and untaxed elements) of a lump sum that can receive a lower (or nil) rate of tax. It applies to people who have reached their preservation age but are still aged under 60.

In 2021–22, the low-rate cap is $225,000.

Thanks so much man

You don't think me being a non resident for tax purposes will make any difference? Or only if I am actually taxed? By the way, does the super fund withdraw tax before sending to you or is it payable at the end of the financial year  when you do your tax?

[gearbox]

23 minutes ago, Kenny202 said:

Thanks so much man

You don't think me being a non resident for tax purposes will make any difference? Or only if I am actually taxed? By the way, does the super fund withdraw tax before sending to you or is it payable at the end of the financial year  when you do your tax?

I don't think there is different treatment in case of being non-resident.

 

https://www.mlc.com.au/content/dam/mlcsecure/adviser/technical/pdf/super_for_non_residents.pdf

 

"If a non-resident cashes out a lump sum from an Australian super fund, the taxable component of  
the amount being withdrawn may be subject to lump sum tax11 in Australia. This is likely to occur  
if the non-resident is below preservation age or if have reached the preservation age and amount
withdrawn from the taxable component exceeds the low rate cap (LRC12). "

 

 

 

 

[Kenny202]

Thanks so much for all your help and time mate. You're a champion ????

 

[georgegeorgia]

On 12/3/2021 at 2:42 AM, Kenny202 said:

Thanks so much for all your help and time mate. You're a champion ????

 

sounds like you running out of money 

[Markc]

On 12/2/2021 at 10:42 PM, Kenny202 said:

Thanks so much for all your help and time mate. You're a champion ????

Are you any the wiser if the Super payment can be organised from Thailand and paid to Thai bank account?

 

I am a Kiwi but worked for a short time in Oz and accumulated a small amount of Super about 11 years ago.  Due to my nationality I am unable to withdraw until 65th birthday which is coming up in a couple of weeks.

 

Hence my question....the amount is below $50K AUS so would probably blow that on trip to Oz to claim with all the covid shennanagins, but would be nice to have in my account here.

 

Cheers

[Kenny202]

Just now, Markc said:

Are you any the wiser if the Super payment can be organised from Thailand and paid to Thai bank account?

 

I am a Kiwi but worked for a short time in Oz and accumulated a small amount of Super about 11 years ago.  Due to my nationality I am unable to withdraw until 65th birthday which is coming up in a couple of weeks.

 

Hence my question....the amount is below $50K AUS so would probably blow that on trip to Oz to claim with all the covid shennanagins, but would be nice to have in my account here.

 

Cheers

Only from what was put in the post mate. I am leaving mine in there for another couple of years. Will start asking some serious questions with them a month or so before. I do believe you would be able to get it living overseas though. Best thing to do I guess call them, or the mob I am with have an online thing you can log onto and send secure mail

[Markc]

Just now, Kenny202 said:

Only from what was put in the post mate. I am leaving mine in there for another couple of years. Will start asking some serious questions with them a month or so before. I do believe you would be able to get it living overseas though. Best thing to do I guess call them, or the mob I am with have an online thing you can log onto and send secure mail

Cheers mate no worries......I have sent a couple of emails already asking the question but they have answered other queries apart from that one........will give it another crack in a couple of weeks when I am eligible to withdraw

[Kenny202]

4 minutes ago, Markc said:

Cheers mate no worries......I have sent a couple of emails already asking the question but they have answered other queries apart from that one........will give it another crack in a couple of weeks when I am eligible to withdraw

I found getting any info out of them was like pulling teeth, say yes you can, no you can't then not sure. I couldn't believe it and thought people here were hard to deal with. The upshot was I wasn't confident of anything they told me. I figure they are like insurance companies....keep messing you around in the hope you will go away. Sounds like the Super companies motto is hang onto your money as long as they possibly can

[Markc]

39 minutes ago, Kenny202 said:

I found getting any info out of them was like pulling teeth, say yes you can, no you can't then not sure. I couldn't believe it and thought people here were hard to deal with. The upshot was I wasn't confident of anything they told me. I figure they are like insurance companies....keep messing you around in the hope you will go away. Sounds like the Super companies motto is hang onto your money as long as they possibly can

Will let you know what the answer is if I ever find out...........

[Kenny202]

1 minute ago, Markc said:

Will let you know what the answer is if I ever find out...........

Thanks bro ???? 

[KhunHeineken]

If / when you withdraw your super, any money earned by that lump sum, be it rent because you bought a property with it, interest from a bank or term deposit account, dividends etc will be taxed at the high non resident rate.  

 

It's not just taxes and fees involved for the withdrawal of your super, it's also what it earns in Australia after you withdraw it, unless you are moving it offshore.   

[Kenny202]

11 hours ago, KhunHeineken said:

If / when you withdraw your super, any money earned by that lump sum, be it rent because you bought a property with it, interest from a bank or term deposit account, dividends etc will be taxed at the high non resident rate.  

 

It's not just taxes and fees involved for the withdrawal of your super, it's also what it earns in Australia after you withdraw it, unless you are moving it offshore.   

Yeah realize that, and sucks a big one too. Hardly worth investing in anything here and interest rates wouldn't buy you lunch. Not sure what I am going to do with it

 

[KhunHeineken]

On 12/31/2021 at 12:03 AM, Kenny202 said:

Yeah realize that, and sucks a big one too. Hardly worth investing in anything here and interest rates wouldn't buy you lunch. Not sure what I am going to do with it

 

 

A Singapore bank account may be a good option for you.  Like anywhere at the moment, it won't earn any interest, but at least the Australian Tax office can't touch it.  

[Markc]

On 12/27/2021 at 4:14 PM, Markc said:

Will let you know what the answer is if I ever find out...........

Hi Kenny

further to this I have now thankfully completed all dealings with AustralianSuper.  This company does not transfer funds to foreign banks and so I am now the proud owner of a AUD cheque from them.  I am hoping this can be depositied with Bangkok Bank ( I have read differing comments on this).

 

On a positive note the whole process from emailing the application form and supporting documents and resolving issues as they came up and to receiving the cheque in the mail only took just over a month including the cheque taking about 10 days in the post.

 

Cheers

Mark 

[Kenny202]

14 hours ago, Markc said:

Hi Kenny

further to this I have now thankfully completed all dealings with AustralianSuper.  This company does not transfer funds to foreign banks and so I am now the proud owner of a AUD cheque from them.  I am hoping this can be depositied with Bangkok Bank ( I have read differing comments on this).

 

On a positive note the whole process from emailing the application form and supporting documents and resolving issues as they came up and to receiving the cheque in the mail only took just over a month including the cheque taking about 10 days in the post.

 

Cheers

Mark 

Im finding them to be pretty unresponsive to be honest. And that's me trying to open an account and have my money transferred. One thing you have to do with CFS is have a few things in place, one of them is a notarized copy of your ID which you have to pay a registered lawyer here to do and a form stating your Australian bank details of not already on file. Did you have to do any of that stuff with them? One good thing about CFS is they have a secure online form sending system, so they know its from you. I already have an Australian bank account which I can have funds deposited too

[Markc]

On 2/27/2022 at 6:37 AM, Kenny202 said:

Im finding them to be pretty unresponsive to be honest. And that's me trying to open an account and have my money transferred. One thing you have to do with CFS is have a few things in place, one of them is a notarized copy of your ID which you have to pay a registered lawyer here to do and a form stating your Australian bank details of not already on file. Did you have to do any of that stuff with them? One good thing about CFS is they have a secure online form sending system, so they know its from you. I already have an Australian bank account which I can have funds deposited too

Having an Australian bank account would make things so much easier, they will just deposit funds straight into it.  I still do not understand why they are unable or unwilling to transfer funds to foreign account, the statement from which formed part of my ID details with the application.

 

Yes I had to verify my ID docs which I did at the Australian Embassy in BKK (1770baht per document) (My thinking was that would be more acceptable than any local notaries)

Having an aus bank account you can do everything from your Aussuper account online whereas I had to do by email which I am sure was initially checked by a bot considering some of the responses I got (about 3 emails from them telling me this or that was unacceptable but not actually answering any of my queries) and then no advice that the application had been processed until I asked for an update by email.  A bit frustrating  but now thankfully all sorted.