Superannuation in Australia. Will I be taxed?

[Kenny202]

This was the final response from my Super company....

Thank you for your email. If you are a non-resident AND do not have or no longer have Australian citizenship then your payment comes under Departing Australian Superannuation Payment (DASP) which does have tax payable regardless of retirement age. This does not appear to be the case for you, and assuming you still have Australian citizenship, then no tax would be payable at age 60 (based on current legislation) if you were to request a lump sum payment of funds from your account with us. Apologies if this was not made clear in my initial email.

[shirtless]

mate i like to know if you have super back in aus,,,,and you no longer live there married her with kids never want back can you take out your super thanks guys ,,,

I just spoke to my accountant and he says to be able to do this you must have been a non citizen, there are provisions for hardship , look into your fund.

[Kenny202]

mate i like to know if you have super back in aus,,,,and you no longer live there married her with kids never want back can you take out your super thanks guys ,,,

I just spoke to my accountant and he says to be able to do this you must have been a non citizen, there are provisions for hardship , look into your fund.

I think you'll find out theres a big difference between non citizen and non resident. As far as I know if you are born in Australia you will always be a citizen. Living overseas though for an extended period of time you are consider a "non resident for tax purposes". I think if you declare you are living overseas and don't intend to return you can withdraw your super. Being married with kids here should present a strong case although I am guessing there will be some penalty and probably tax. Like the man said, best person to ask is your super company. If they start crapping on about not being able to advise on tax or penalties until money is drawn, push them harder to give you a ball park. Be awful to withdraw your super only to find you've lost half of it. Other option you may be able to draw on it like a programmed pension plan, and the balance of your money remains invested. Good luck with it

[BB24]

Having spent over two years 'studying' the rules in Aust while planning my retirement and move to Thailand, I can say without fear of correction that no one can answer your question correctly. I will provide some info that IMO is correct now, but can (and probably) will be changed before you are 60. I only have a few years to wait myself, but will be doing something similar then, or I will adjust things as things change. You cannot expect certainty - and you can expect confusion and mistakes (from Super fund too).

You will not be taxed (tomorrow) if 60 and withdraw all your Super balance.

You will be taxed on ANY interest earned if you put it in an Aust bank account - from dollar 1 (no threshold) - because YOU ARE a non-resident for Tax Purposes.

There are so many other issues/rules, and the whole area is both complex and is moving all the time. Do not believe anything anyone tells you - anyone - including me - you must research and check things yourself - always get a second/third opinion. AND any correct advice given today may be wrong tomorrow because the rules keep being changed. In two years I found no one knew everything - even those you pay money to.

However there was a couple of good websites that provided excellent advice - hope they are allowed by moderator:

http://www.superguide.com.au/

https://www.moneysmart.gov.au/superannuation-and-retirement

Whenever there is a change by Govt (or proposal) give them a few days to review and update their websites.

OR - find a financial adviser who specialises in Super (only Super).

[Kenny202]

Having spent over two years 'studying' the rules in Aust while planning my retirement and move to Thailand, I can say without fear of correction that no one can answer your question correctly. I will provide some info that IMO is correct now, but can (and probably) will be changed before you are 60. I only have a few years to wait myself, but will be doing something similar then, or I will adjust things as things change. You cannot expect certainty - and you can expect confusion and mistakes (from Super fund too).

You will not be taxed (tomorrow) if 60 and withdraw all your Super balance.

You will be taxed on ANY interest earned if you put it in an Aust bank account - from dollar 1 (no threshold) - because YOU ARE a non-resident for Tax Purposes.

There are so many other issues/rules, and the whole area is both complex and is moving all the time. Do not believe anything anyone tells you - anyone - including me - you must research and check things yourself - always get a second/third opinion. AND any correct advice given today may be wrong tomorrow because the rules keep being changed. In two years I found no one knew everything - even those you pay money to.

However there was a couple of good websites that provided excellent advice - hope they are allowed by moderator:

http://www.superguide.com.au/

https://www.moneysmart.gov.au/superannuation-and-retirement

Whenever there is a change by Govt (or proposal) give them a few days to review and update their websites.

OR - find a financial adviser who specialises in Super (only Super).

All great advice. Yes agree with you on all points. And as you said you are better off maintaining residency status for interest earned on bank accounts or money invested, although I still haven't worked out how to do that without owning a property or returning for 6 months of the year. As far as a final answer on my super see response below. Yes it could change tomorrow...

Thank you for your email. Your residency status defines your taxation liability at the time of payment. if however you are an Australian citizen also this overrides any non-residency status held and tax is then based on your Australian citizenship under superannuation preservation rules. In summary if you are a non-resident at the time of payment however you are also an Australian citizen and have reached the age of 60 and retired, no tax is payable on release.

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