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 temporary resident of Australia then check out another SuperGuide article Accessing super early: Temporary resident.
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
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?
Trish’s response: 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 preservation age and retire, or satisfy another condition of release. (I explain the conditions of release in my article 12 legal reasons to cash your super).
Preservation age for anyone born on or after 1 July 1960 is age 60, which is the
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
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 may 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-1990 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?
Trish’s response: 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?
Trish’s response: No, not if the reason an individual is seeking early release of super benefits is due to leaving Australia. Quoting directly from the ATO website:
“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?
Trish’s response: No. See my response to Question 2.
If you have reached your preservation age (currently 55) when you depart Australia or at a later stage, then you may be able to access super benefits subject to certain conditions.
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?
Trish’s response: No.
Accessing super is not possible for the particular reason of permanent departure. 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 superannuation benefits to help finance an apartment. Is that possible? I don’t expect to return to Australia.
Trish’s response: No, not specifically for the purpose of buying a
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 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
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
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
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 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
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 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