Q: My husband and I are getting ready to return home (USA) after living & working in Perth for the past 2 years. We came to WA on a 457 visa. My husband has a super fund & we were wondering if we can leave the money in his super until he reaches retirement age (i.e.
Trish’s response: Temporary residents are treated differently under the
If an individual has held a temporary visa under the Migration Act 1958 (except for visas under subclasses 405 and 410), then such an individual is eligible to apply for a ‘Departing Australia Superannuation Payment’ when leaving Australia.
In most cases, a superannuation fund must transfer the individual’s super benefits to the ATO if the individual has not claimed the benefits within 6 months of departing Australia, or within 6 months of the expiry or cancellation of the visa, whichever event is later.
A
Note: From 1 July 2013 onwards, a form of ‘interest’ will be paid at a rate equivalent to the rate of inflation – Consumer Price Index (CPI) on all superannuation accounts reclaimed from the ATO. Currently, no interest is paid on unclaimed superannuation monies, although if that super account had remained with the super fund, then you could have expected investment earnings less
In relation to your comment about saving tax by leaving the super benefits in unclaimed super until the age of 60, I believe the payment is still subject to withholding tax. My understanding (but I’m willing to be corrected on this) is that former temporary residents (now non-residents) receiving money from the ATO (rather than a taxed super fund) are not eligible for tax-free payments from the age of 60, and withholding tax is payable regardless of age, or whether you have retired – although you need to confirm the withholding tax treatment of unclaimed super benefits for non-residents with the ATO.
Note that the definition of a resident for tax purposes is different to the definition used by the Immigration department or
Background: Based on the ATO website, the withholding tax rates for DASPs are:
- 0% for the tax-free component
- 35% for a taxed element of a taxable component
- 45% for an untaxed element of a taxable component (certain
Hi Trish,
I really hope you can help me out. I was working in Australia on 457 visa (2008) and during that period applied for parent visa. I am on waiting list – on bridging visa. I can remain legally in Australia till the decision is made. Once my work visa ceased (2010) I requested my super to release my funds but was told that until I leave Australia permanently or I get my PR I won’t be able to access it. I am 70 years old retiree and for the past 3 year’s I have been trying to get the funds on compassionate grounds based on special circumstances. But so far unsuccessful. Is there any way I can claim the funds?
Would really appreciate if you could help me out.
Regards,
Edward
Hi Edward
Thanks for your question. I have included an extract from the ATO website which answers the main part of your question.
“Since 1 April 2009, retiring or reaching preservation age has ceased to be a condition of release of super benefits for temporary residents.
As a result, if you have held a temporary visa under the Migration Act 1958 (except visas under subclasses 405 and 410) you must first depart Australia before you can claim your super, even if you have retired from the workforce or have reached preservation age.
DASP withholding tax rates will apply to this payment – for more information, see Tax on your super payment.
The link for this information is here: http://www.ato.gov.au/individuals/content.aspx?menuid=0&doc=/content/00276719.htm&page=7&H7
In your circumstances it does seem unfair, but unfortunately this is the rule now. It may be still be possible to access your super if you satisfy other conditions of release (apart from retirement and reaching preservation age). The other possibilities can be found in the SuperGuide article: http://www.superguide.com.au/accessing-superannuation/accessing-super-early/12-legal-reasons-to-cash-your-super
I wish you all the best
Regards
Trish
hi, I am due to leave WA permanently in august having been here for a year, am I entitled to claim the money from my super fund? what tax and penalties would I have to pay? who would I need to contact about claiming it back? thanks in advance if you can help
paul
Hi Paul
Best of luck with your travels. If you are a temporary resident of Australia then it is likely you will be able to claim your benefits when you leave the country. These links will explain how to apply for your super benefits:
http://www.ato.gov.au/corporate/content.aspx?doc=/content/23637.htm
https://applicant.tr.super.ato.gov.au/applicants/default.aspx?pid=1
The tax payable is set out below (an extract from the ATO website):
All super lump sum payments are made up of two components:
a tax-free component
a taxable component, which may include
an element taxed in the fund
an element untaxed in the fund.
The withholding tax rates for these payments are:
0% for the tax-free component
35% for a taxed element of a taxable component
45% for an untaxed element of a taxable component.
Regards
Trish
Hi,
My question is if a permanent residece visa has been cancelled are u entilted to all your super without exit fees. I aware of a person who paid a exit fee of 5500 dollar and tax 2800 dollars ,the sum he had in his super was 12,000.
Cheers
4
4
hi,
i originally came to australia in ’03 on a temporary work visa / sponsored by my designated employer for 1 year. i continued to work in australia, i have not renewed and have been working beyond my visa requirement. in other words illegally to this day, without subsequent employers asking for details pertaining to visa requirements. i have been working full time since to this day. i am returning back to Guam permanently; question / enquiries are – am i entitled to my superfunds whilst i have been here majority of time illegally? what are the ramifications of my situation?? i have about $55,000 in current fund. how can i access or can i access these funds??? what are the tax rates??? just need clarifications / directions….
cheers
Hi Esau
Thanks for your email. I cannot comment on the treatment of illegal immigrants but if you satisfy the rules for early release of super, then you can access your super benefits.
I’m not aware of super benefits being confiscated in these circumstances but perhaps you may wish to ask this question of the ATO, but it may be wise to ask this anonymously. Note that an individual eligible to access super benefits when departing Australian permanently can apply after leaving the country.
Good luck
Regards
Trish
Hi,
I am a permanent resident in Australia, born in 1960 I am in a self managed Superannuation Fund, if I return to Ireland can I access my funds? I have a cross section of funds self managed and super funds, will I be liable for taxes? can I acess 100% of my shares in the self managed fund, if my husband imigrated with me can he access his shares also?
Thank you
Evelyn Dauth
Hi Evelyn
The general answer is no, you cannot access your super before retirement age, even when you leave the country when you’re an Australian citizen or permanent resident. If you try our in ‘accessing super early’ section, you can find several articles/ Q&As on this topic.
Best of luck with your move.
Regards
Trish