This article contains 6 examples of the most popular questions received by SuperGuide from Australian citizens and Australian permanent residents departing Australia, and who are seeking to access super benefits before retirement. If you’re a
The questions covered in this article are listed below (scroll down the page to read the responses):
- My son, 42 years old has moved permanently to the USA. He does not intend to return to Australia. We were told that he cannot access his super until retirement. Is this correct?
- I was a member of an Australian super fund in the 1990s. I have now left Australia permanently. Can I access my super benefits?
- My husband is not an Australian citizen, however he is a permanent resident. Can he access his superannuation, as we have moved to the US, and don’t know if we will be returning?
- I’m an Australian citizen but I’m leaving Australia permanently. Can I access my super?
- I’m leaving the country, AND taking out UK citizenship. Can I access my super?
- I live in Hong Kong. I am 56 and I want to cash my superannuation benefits to help finance an apartment. Is that possible? I don’t expect to return to Australia
1. Relocating to United States
Q: My son, 42 yrs old, has moved permanently to the USA. He has married an American lady and purchased a house etc. He does not intend to return to Australia. He has a small industry-based super a/c & we were told that he cannot access this until retirement. Is this correct?
A: I’m assuming your son was a permanent Australian resident and Australian citizen before he departed Australia’s sandy shores, rather than a temporary resident. Australian citizens who then relocate overseas are treated in the same way as Australians living in Australia: they cannot access preserved super benefits until they reach
In the olden days (just under 15 years ago) it was possible to access your preserved super benefits when you left Australia permanently subject to meeting certain conditions. The rules were changed from July 1998 which now means that any Australian citizen who moves overseas permanently cannot access super benefits unless they satisfy a condition of release. The rationale for this policy is that Australian citizens may return to Australia to retire, or at least have the option of retiring in Australia.
Note: Temporary Australian residents who have visited the country under an eligible temporary resident visa (temporary visa listed under the Migration Act 1958, but not subclasses 405 and 410) can withdraw any super benefits (less tax) when the visa expires and when they leave Australia. If a temporary resident doesn’t claim any of his or her super benefits within six months of departing Australia, then the super fund will generally pay the super benefits to the Australian Tax Office (ATO). You then have to apply to the ATO for access to your super. You find more information about temporary residents accessing super benefits upon leaving Australia by reading Superannuation information for temporary residents departing Australia on the ATO website.
2. Pre-1999 super benefits
Q: I was a member of an Australian super fund in the 1990s. I have now left Australia permanently. Can I access my super benefits?
A: Maybe. If your super benefit includes a category of benefit known as ‘unrestricted non-preserved’, then you can access that portion of your benefit without having to satisfy another condition of release. See article Unrestricted access to super, sometimes.
3. Permanent resident leaving Australia
Q: My husband is not an Australian citizen, however he is a permanent resident. Can he access his superannuation, as we have moved to the US, and don’t know if we will be returning?
A: No, not if the reason an individual is seeking
“Australian and New Zealand citizens, permanent residents of Australia or holders of retirement visas generally cannot claim their super… because they have the option of retiring in Australia. However Australian and New Zealand citizen, and permanent Australian residents, are able to claim super money they earned while previously in Australia on a temporary visa if this money is now held by the Tax Office.”
Australian citizens and permanent Australian residents who then relocate overseas are treated in the same way as Australians living in Australia: they cannot access preserved super benefits until they reach preservation age and retire, or satisfy another condition of release.
4. Australian citizen leaving Australia forever
Q: I’m an Australian citizen but I’m leaving Australia permanently. Can I access my super?
A: No. See my response to Question 3.
If you have reached your preservation age (currently 55) when you depart Australia, or when you reach age 55 at a later stage, then you may be able to access super benefits subject to certain conditions. See SuperGuide article Accessing super early: Living overseas and over the age of 55.
Note: If you had been a temporary Australian resident rather than a permanent Australian resident, then you would have been able to access your super benefits (see article Accessing super early: Temporary resident).
5. Leaving Australia for the United Kingdom
Q: I’m leaving the country, AND taking out UK citizenship. Can I access my super?
A: No. Accessing super is not possible for the particular reason of permanent departure from Australia, if you are an Australian citizen, or a permanent resident of Australia. In the past, the fact that an individual was leaving Australia permanently was an acceptable condition of release. If you supplied sufficient evidence, such as permanent residence in another country, job details and even citizenship application, then it was possible to access a super benefit before retirement. This condition of release no longer applies.
6. Living outside Australia and over the age of 55
Q: I live in Hong Kong. I am 56 and I want to cash my
A: No, not specifically for the purpose of buying
Different rules regarding super access come into play when a fund member has reached their preservation age. Preservation age is currently 55 years (although steadily increasing to 60, depending on birth date), which means an individual can access super benefits provided they have retired from the workforce.
For an Australian living overseas, the rules are a little more complicated, although you should check the rules with your Australian super fund, or with the ATO.
Generally, an Australian living overseas, like Australians at home, who has reached the age of 55 can access his or her super benefits in Australia provided they provide documentary evidence to the fund that they have retired.
If an ex-pat is no longer a resident of Australia however, and aged 55 or over, I believe that provided the individual supplies documentation of overseas residency and that they are not employed in Australia, then super funds will consider releasing the super benefits. Again, you need to do your own research on your particular circumstances.
Note: Tax is generally payable on super benefits withdrawn before the age of 60.
I am a NZer living and working in Australia since 2007. I do not have citizenship and will never as I do not meet the points quota. If I were to return to NZ permanently, is correct that I have to transfer, my super from my aussie super fund to Kiwi Saver or do I request my super once I am entitled (reached correct age) if so does it stay with the super company in Aussie or does the tax department ‘hold’ it.
To be honest I wouldn’t trust kiwisaver one iota!.
AND if while still in aussie, if I were to change to a SMSF from what I am using now when it came time to move, is it going to be a drama to get access to my funds from NZ.
What I am trying to get across is that I would rather be in control of my money, I want to get access to it, when the time comes without a lot of hassle, with all the GFC drama still playing out, I am very wary of where my funds are going to be ‘hangingout’ til I am ready for them, it is a very scary prospect that when I am old, that people/gov agencies may try and keep them from me or try to take a piece
Hi all,
I was in same situation like you, but I received this ans from my Supper, I feel I must share This…
Good for those who have PR but not Australian Passport.
If you have PR and don’t hold Australian Passport, then you can withdraw your supper after the expiry of your PR visa dates once you decided not to return back to Australia again.
Thanks,
ShreeYog
hi! i was in australia on a one year working holiday visa, but unfortunately, my passport was stolen. i am therefore unable to produce exit stamps, despite having left Australia, and my visa having run out.
is there an alternative way to showing a passport, that would release my superannuation funds to me? is it possible to fill out a 1194 Form instead of showing a passport?
I have a foster daughter and husband. By the time the daughter is eligable to emigrate to Canada she will be in her sixtiest year. Her husband, however, will be 10 years younger.They would like to join the rest of the family who already live in Canada. The question is: Can they both take their super with them, do they have to pay tax? i would appreciate an answer.
My daughter works and it is difficult for her to make these enquiries. Erika
Hi Team,
I have found by reading the above that i cannot access my superannuation money until my retirement age if i leave Australia Permanantly
Below are some questions about it -
1.) After i leave Australia , will my superanuation funds go to ATO as lost super? if yes will i be able to claim it after 30 yrs (i am 30 yrs now)
2). Will there be any ongoing deductions from lost super or only my lumsum will be taxed while withdrawal.
3.) How do you withdraw money after so many years.
4.) Is there a way to roll my Australian super fund into some Indian pension fund.
Thanks,
Shruti.
it depends on if you are a tempory resident. Are you aust resident ot citize
If you have PR and don’t hold Australian passport then then you can withdraw your supper after expiry of your PR visa dates.
Regarding lost super status, If you keep updated address and contact details with your super account time to time, then your super account will not consider as lost super. But to keep it Active you need to put installment in it regularly if you want.
Hi Trish just wondering what do they clasify at difficult hardship and how i can access my super due to this.
Thanks
Hi Rosa
Thanks for your comment.
The first step is to check whether your super fund permits early access to super benefits. Most super funds do permit such access but some do not.
1. If you apply under severe financial hardship, then you apply directly to your super fund. You will need to satisfy certain conditions.
2. If you’re eligible for early release on compassionate grounds, then you apply to the government agency, known as APRA.
The following articles explain the rules in more detail:
http://www.superguide.com.au/accessing-superannuation/accessing-super-early/is-it-possible-to-withdraw-super-to-pay-overdue-rent (explains compassionate grounds)
http://www.superguide.com.au/accessing-superannuation/accessing-super-early/unemployed-and-in-financial-hardship (explains rules for severe financial hardship access
http://www.apra.gov.au/Superannuation/Early-Release-of-Superannuation-Benefits.cfm (an APRA link)
http://www.apra.gov.au/Superannuation/upload/APRA-ROB-Brochure-v5-15-Dec-2008.pdf (an APRA publication)
I wish you the best of luck.
Regards
Trish
Hi Trish,
I am a South African who worked in Australia for 20 months (finished August 2010). In January I lodged an online application through the ATO website for DASP. I received an email from them saying I can expect hear something in 28 days from my super. I never did. Ultimately I called them in Melbourne and they confirmed receipt of the application and that they were processing it. A number of weeks they turned around and said that they do not accept online applications (why ATO had no knowledge is beyond me) and that I had to do a manual application and submit all sorts of forms, documents that had to be certified. They also insisted that everything had to be done by post and I had to have my immigration status confirmed by post.
But what is impossible, is that they have insisted on the wording of how the documents should be certified. The problem with that, is in South Africa, people who have the authority to certify documents which according to my knowledge are prescribed by law. For me to ask a commisioner of oaths or a police officer would not be accepted. The Super are refusing to back down and are in fact quite arrogant. If I did not know any better I would say they are attempting to hang onto my super so that they can keep on charging their fees.
But since we cannot reach an agreement on what is correctly certified, do I have the right to ask them to transfer those funds to ATO (since it is now more than six months that a contribution was made to the fund by the employer) or can they refuse. At this stage I would rather deal with ATO than my super.
Many Thanks
Hi Giordano
Thanks for your comment. I would be making a complaint to the ATO about your experience.
The usual rule is that the super fund must 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.
I also suggest you make an official complaint to your super fund – check the super fund’s website for the complaint process – there must be a common sense solution.
I wish you all the best.
Regards
Trish
hi this is vikramjeet
i came to australia two years ago on studets visa and now i m going back what i should do for my supper and i m indian citzen and i called my supper they said i can apply only once i left australia.
pls reply.
Hi Vikramjeet
Thanks for your comment. Your super fund should be able to supply you with a Departing Australia Superannuation Payment form.
The following link explains everything that you need to do
http://www.ato.gov.au/individuals/PrintFriendly.aspx?ms=individuals&doc=/content/00276719.htm
Regards
Trish
Hello Trish, If an individual (Australian Citizen) feels that it is wrong that they can not access their Super until preservation age, and they are immigrating to another country permanently, what is to stop them from doing so anyway as a trustee of a SMSF? And what would be the likely penalty that could be applied by the ATO anyway if they are no longer in Australia? Thanks and regards David
Hi David
Thanks for your email. I won’t be able to comment specifically on your proposed strategy but if a SMSF trustee breaches the payment rules, then he or she risks the super fund being non-complying and losing half of the fund assets in penalties. SMSF trustees may also be penalised personally for taking such action. I’m not sure of the implications if an individual has left the country and the assets have also gone. I suggest you chat to someone who is aware of the tax treaties between Australia and the country you’re moving to.
Good luck
Regards
Trish
Hi Trish,
I have a (TPD) Total permanent disability and two dependants, wife and child. My wife is unable to work as i can not look after my daughter (14mnths) daily needs. Am i entitled to my superannuation early release.
Thankyou in advance.
Hi Glenn
Thanks for your email and I’m sorry to read about your circumstances.
It may be possible to access super benefits due to permanent disability. You can access your preserved super if you become permanently incapacitated, that is, the trustee of your super fund is satisfied that, due to ill health, you’re unlikely ever to be able to work in a job for which you’re qualified by education, training or experience. You will need to discuss this with your doctor and your super fund, to see if you satisfy the conditions. You may also have TPD insurance attached to your super fund that may be available.
If you’re on a Centrelink benefit, you also may be able to access super benefits if you’re in severe financial hardship.
It is possible to apply for early release of super benefits on compassionate grounds. Although the compassionate grounds are very specific; they include assisting with medical treatment for chronic conditions, or assisting with medical transport, or assisting with modifications to a home. You must apply to the Australian Prudential Regulation Authority (APRA). You can find the steps involved when applying for early release on compassionate grounds by clicking here: http://www.apra.gov.au/Superannuation/Early-Release-of-Superannuation-Benefits.cfm
Please be aware that some super funds don’t permit early access for any reason, even for compassionate grounds, so check that the super fund’s rules allow early withdrawal on these grounds before applying to APRA.
We have many other articles on ‘accessing super early’ on the SuperGuide website, which you may find helpful.
http://www.superguide.com.au/accessing-superannuation/accessing-super-early
I wish you all the best.
Regards
Trish
Hi Trish,
I am about to turn 56 and I recently set up a self managed super fund after losing tens of thousands of dollars over the GFC period.(Like so many others!) Currently the funds are in an IBD until i decide what to do with them. I now find I need to leave the country to care for my ailing parents – both in their 80′s, one with a brain tumour who is fading fast. Am I able to take my super money with me? I will be caring for my parents and at some stage may take on part time work if circumstances permit. Once I make the move I will not be returning to Australia. Your advice would be greatly appreciated.
Hi Jane
Thanks for your email. I am sorry to hear about your parents. The following articles should assist you with your query:
http://www.superguide.com.au/accessing-superannuation/accessing-super-early/living-overseas-over-age-of-55
http://www.superguide.com.au/accessing-superannuation/accessing-super-early/australian-citizen-retiring-overseas
http://www.superguide.com.au/superannuation-basics/taking-benefits-before-the-age-of-60
http://www.superguide.com.au/retirement-planning/turning-55-taking-super-tax-and-timing
http://www.superguide.com.au/retirement-planning/retiring-before-the-age-of-60-the-tax-deal
In relation to a SMSF, any trustee planning to live overseas for an extended period may need to consider closing the SMSF due to the fact that the SMSF needs to meet the ‘Australian superannuation fund’ defintion, which is linked to where the SMSF trustees live. If you choose to wind up the SMSF, then the ATO (or an accountant) can provide you with further assistance, with the necessary steps involved. A useful ATO link is:
http://www.ato.gov.au/content/downloads/spr00182487n8107.pdf
I wish you all the best
Regards
Trish
I was a australia but now no longer one the australian embassy took my passport i am brittish born the ATO office in perth said that you can claim your super after 6 weeks of departing australia i have now been out off australia for 8months and still waiting on my super, the immi said that i am not australian cittzen and i do not wish to be one i got married in the philippines and now i am a cittzen off the philippines but australia is still holding me up what can i do or do i get my lawer to do it
Hi Stephen
Thanks for your email, and sorry for the delay in responding.
I am surprised that you have not yet received your super benefits if you are eligible for a DASP and completed the required forms.
If you had received those super benefits as a permanent Australian resident/citizen, then you’re unlikely to be able to access your super benefits when you depart the country, even though you may have relinquished that status.
In the first instance, contact your super fund to find out whether they still hold your super funds, and what further steps you need to take, if you fulfil the category of ‘temporary resident’ (see article http://www.superguide.com.au/accessing-superannuation/accessing-super-early-temporary-resident ).
I will provide a fuller response in our February 2011 newsletter.
Regards
Trish
Hello trish, very helpful website, thank you!
I worked in Australia from 1996 to 2006 and then moved permanently to UK. I obtained permanent residency the year before I moved back. I have a super fund with AMP which I would like to transfer into one of my UK funds.
I understand the point about permanent residents not being able to take super funds out, because they are entitled to retire in Australia and may well do so. But when I got my PR visa, there was a condition that I had to spend 2 years in Australia within the next 5, or I would lose the PR entitlement. Due to change in family circumstances I have not done that – so it looks like I could not return to Australia to retire, even if I wanted to.
So then the reason preventing me from taking my fund out no longer applies?
Any clarification gratefully received!
Regards
Neil