Is accruing interest on super after retirement taxable?

[Kenny202]

Hoping someone from Australia will now....I am at full maturity age where if I withdrew my total super out it would be non taxable. My super was very straight forward...only employer contributions.

I have already made a first small withdrawal a year ago and in that time the money has earned interest. I am just wondering if the interest I have accrued after making an initial and further withdrawals is taxable?

It is a fairly small amount anyway, probably under the tax free thresh hold although I been here a long time now and non resident for tax purposes.

 

Hadn't thought about it too much before but providing my money is invested in the same super account I had for years, before and after retirement.... in the same fund....is the interest I earn on my Super fund taxable after making withdrawals during maturity age?

[KhunHeineken]

You have said you are a non resident for tax purposes.  I gather the amount you withdrew is earning interest in a bank account in Australia.  As a non resident for tax purposes, there is no tax free threshold. 

 

Here's the non resident tax brackets.

 

You would be up for 32.5% tax on the interest you earned. 

 

At a tax rate of 32.5%, you might consider moving the money offshore.  

 

Oh, and before you ask, the below tax brackets are not just for guys like Paul Hogan. 

 

Foreign resident tax rates 2023–24

Taxable income	Tax on this income
0 – $120,000	32.5c for each $1
$120,001 – $180,000	$39,000 plus 37c for each $1 over $120,000
$180,001 and over	$61,200 plus 45c for each $1 over $180,000

Edited April 8 by KhunHeineken

[Kenny202]

No only withdrew 2 smallish amounts to supplement income. The main principle is still in the original super account earning interest. Not concerned about the money I withdrew or withdraw....I am concerned if the interest earned in my original superannuation account is / will be taxable

[KhunHeineken]

17 minutes ago, Kenny202 said:

No only withdrew 2 smallish amounts to supplement income. The main principle is still in the original super account earning interest. Not concerned about the money I withdrew or withdraw....I am concerned if the interest earned in my original superannuation account is / will be taxable

These are your words.

 

"I have already made a first small withdrawal a year ago and in that time the money has earned interest. I am just wondering if the interest I have accrued after making an initial and further withdrawals is taxable?"

 

Yes, as a non resident, the interest is taxable at 32.5%. 

 

As for the income generated by the super fund, keep an eye on the other thread running.  It' a complex issue of tax residency, DTA's etc.  Tax residency laws in Australia are set to change, as well at the DTA between Australia and Thailand being updated in the future, as well as Thailand looking to tax the remitted funds of foreigners. 

[Kenny202]

1 hour ago, KhunHeineken said:

These are your words.

 

"I have already made a first small withdrawal a year ago and in that time the money has earned interest. I am just wondering if the interest I have accrued after making an initial and further withdrawals is taxable?"

 

Yes, as a non resident, the interest is taxable at 32.5%. 

 

As for the income generated by the super fund, keep an eye on the other thread running.  It' a complex issue of tax residency, DTA's etc.  Tax residency laws in Australia are set to change, as well at the DTA between Australia and Thailand being updated in the future, as well as Thailand looking to tax the remitted funds of foreigners. 

So you don't know right?

[gearbox]

Interest earned in super if you are in pension phase is not taxable, whether resident or not.

 

If your super is still in accumulation phase the interest is super income and is taxable at 15%.

 

If your money is outside super then the non resident rules for interest apply.

 

It is in your best interest to keep your money in super in pension phase, no income is taxable. Hard to get zero tax anywhere in the world.

Edited April 8 by gearbox

[Kenny202]

8 minutes ago, gearbox said:

Interest earned in super if you are in pension phase is not taxable, whether resident or not.

 

If your super is still in accumulation phase the interest is super income and is taxable at 15%.

 

If your money are outside super then the non resident rules for interest apply.

 

It is in your best interest to keep your money in super in pension phase, no income is taxable. Hard to get zero tax anywhere in the world.

Not really sure what you mean by pension phase. I am not on the pension as I live outside the country but I am retired and have filled out the declaration. I haven't converted my Super into a pension type fund as of yet in fact I was told that can have tax implications.

 

My money has been in the same super account / fund for years while I was working and since I left work. I reached maturity age last year...made a small withdrawal and left the balance of the money in the super fund which is accruing interest. I have just withdrew another small amount. I checked at the time and if I withdrew the total amount of super at maturity age no tax was payable.

 

So is that correct? As long as I leave my money in the original super account, any interest earned on the balance now and in the future is non taxable even if I make withdrawals? Is this what you mean by pension phase or am I in the accumulation phase?

 

Many thanks for your help 🙂

Edited April 8 by Kenny202

[gearbox]

20 minutes ago, Kenny202 said:

Not really sure what you mean by pension phase. I am not on the pension as I live outside the country but I am retired and have filled out the declaration. I haven't converted my Super into a pension type fund as of yet in fact I was told that can have tax implications.

 

My money has been in the same super account / fund for years while I was working and since I left work. I reached maturity age last year...made a small withdrawal and left the balance of the money in the super fund which is accruing interest. I have just withdrew another small amount. I checked at the time and if I withdrew the total amount of super at maturity age no tax was payable.

 

So is that correct? As long as I leave my money in the original super account, any interest earned on the balance now and in the future is non taxable even if I make withdrawals? Is this what you mean by pension phase or am I in the accumulation phase?

 

Many thanks for your help 🙂

The only way the super income becomes tax exempt is when you move your super from accumulation to pension phase (income stream). I'm more or less in the same boat although I'm a tax resident, this in principle won't matter unless you have a SMSF and you need to satisfy the residency tests.

 

https://simplyretirement.com.au/tax-super-overseas

 

If you get Oz super pension it may be taxable under the new Thai rules...that is if you bring it to Thailand via bank transfers. Australia won't tax your super pension and income generated by your super even if you are non resident

[scorecard]

On 4/8/2024 at 8:45 PM, Kenny202 said:

So you don't know right?

He actually knows very little bur good at writing bullshed and annoying / upsetting other members. 

 

I blocked him six months ago but somehow he's got past my block. I will do the block again.

[KhunHeineken]

On 4/8/2024 at 1:45 PM, Kenny202 said:

So you don't know right?

You don't even know what type of plan your Super is in.  :)

 

You asked about interest earned on your withdrawals and I answered.  32.5% as a non resident for tax purposes

 

 

 

[KhunHeineken]

20 hours ago, scorecard said:

He actually knows very little bur good at writing bullshed and annoying / upsetting other members. 

 

I blocked him six months ago but somehow he's got past my block. I will do the block again.

I didn't get past your block.  You didn't block me in the first place.  Just admit it. You enjoy reading my posts.