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Tax on Aussie Superannuation


STEVEPEACOCK

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I am being made redundant in the near future so option of gaining PR after 4 years on a 457 is now a none runner. I am over 55 and was under the impression that I could access 1st 180k of superannuation tax free (I must have read that in the financial pages) however I have been told today that is for residents & none residents are taxed at 35%. That's on to of 15% taken off contributions !!

Does anyone have any advice on this, is it correct and if so is there is anyway to access tax free ?

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  • 4 weeks later...

cannot go for PR as need 4 years (over 50) also a statement of ongoing employment & company will not provide !

I have had a PM response today stating that if over 60, super can be accessed tax free for none residents but I do not know where to check this. ATO telephone line do not have a clue !

Has anyone been in (or are in similar situation). If above is true it would obviously be better leaving super' for another 2 1/2 years to save 38% tax.

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Age 55 is the preservation age where you can access your super but it is subject to tax, you can do a transition to retirement from this age but the pension is taxed (at 15% I believe). at age 60 you can do a transition to retirement and the pension is not taxed. From your retirement age you have full access to your super which is generally tax free (subject to limits and rules) and that you are a resident of Australia for tax purposes. If a non resident then the tax situation changes again of which I am not all that clear about at present.

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I am confused.

So you can't get the super at retirement age because you were a temporary resident?

But you can claim it as a former temporary resident upon departing the country?

Does the past PR status come into it at all?

The reason I ask is my wife started on working holiday, then temporary residency, then permanent residency.

But is no longer a resident.

Can she claim all of her super back?

 

My super is locked in Australia until I turn 56.

It is news to me that I have to pay 35% tax on this if I take the lump sum before I turn 60, which I fully intended to do.

Can I simply take the lump sum as a non-resident?

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I am confused.

So you can't get the super at retirement age because you were a temporary resident?

But you can claim it as a former temporary resident upon departing the country?

Does the past PR status come into it at all?

The reason I ask is my wife started on working holiday, then temporary residency, then permanent residency.

But is no longer a resident.

Can she claim all of her super back?

 

My super is locked in Australia until I turn 56.

It is news to me that I have to pay 35% tax on this if I take the lump sum before I turn 60, which I fully intended to do.

Can I simply take the lump sum as a non-resident?

 

Hi

 

If she obtained permanent residency then this would override temporary residency and so the usual conditions of release and tax would apply.

 

Therefore it would not be possible to take the lump sum without meeting the retirement conditions of release.

 

 

Regards

 

Andy

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Hi

 

If she obtained permanent residency then this would override temporary residency and so the usual conditions of release and tax would apply.

 

Therefore it would not be possible to take the lump sum without meeting the retirement conditions of release.

 

 

Regards

 

Andy

She's been ditched by the DIBP and no longer has any connection to Oz. Shafted yet again by the sounds of it.

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