Superannuation

[Sammielou 0]

Hi, my husband and I have lived in Aus for the past 8 years and plan on leaving in a couple of years under the assumption we could take our super as a lump sum.

we recently learnt this was not case unless you are a temporary resident. We are sure we were told many years ago that you were able to do this if you wanted to purchase property, can anyone shed any light on this matter.

[Andrew from Vista Financial 592]

Hi there

 

How old will you and Husband be prior to leaving Australia?

 

Thanks Andy

[Marisawright 6,537]

1 hour ago, Sammielou said:

Hi, my husband Nd I hVe lived in Aus for the past 8 years and plan on leaving in a couple of years under the assumption we could take our super as a lump sum.

we recently learnt this was not case unless you are a temporary resident. We are sure we were told many years ago that you were able to do this if you wanted to purchase property, can anyone shed any light on this matter.

Unfortunately, if you're a permanent resident, you can't withdraw your super until you reach "preservation age".   So the question is, how old are you now?  

By the way, although temporary residents can withdraw a lump sum, they lose about half of it in tax, so it's not all good news for them either. 

[Sammielou 0]

2 hours ago, Andrew from Vista Financial said:

Hi there

 

How old will you and Husband be prior to leaving Australia?

 

Thanks Andy

Hi Andy

We are looking at approximately 3 years time so I will be 57 and hubby would be 56, we have looked on various sites which advise the preservation age etc but I do not klnow how this particular couple were able to take the whole amount to purchase a property

[Marisawright 6,537]

2 hours ago, Sammielou said:

We are looking at approximately 3 years time so I will be 57 and hubby would be 56, we have looked on various sites which advise the preservation age etc but I do not klnow how this particular couple were able to take the whole amount to purchase a property

The preservation ages have changed, so perhaps they did it a few years ago?   There is no way around the preservation age, unless you can demonstrate financial hardship.  

Note also that if you are going to take a lump sum at some point, you need to do it while you're still living in Australia. 

If you wait until you're living back in the UK and then withdraw a lump sum, it will be taxable in the UK and the Inland Revenue will grab a huge chunk of it (about a third).  

[Andrew from Vista Financial 592]

2 hours ago, Sammielou said:

Hi Andy

We are looking at approximately 3 years time so I will be 57 and hubby would be 56, we have looked on various sites which advise the preservation age etc but I do not klnow how this particular couple were able to take the whole amount to purchase a property

Hi again

So unfortunately you will not meet a condition of release at that time, to do so it means that you need to be at least preservation age and if under age 65 essentially retired.

As Marisa mentioned above perhaps they met a condition of release at the time, it has moved and still is progressively moving upwards as follows:

Preservation date of birth and age

Preservation age (years)

Before 1 July 1960:                  55

1 July 1960 – 30 June 1961: 56

1 July 1961 – 30 June 1962: 57

1 July 1962 – 30 June 1963: 58

1 July 1963 – 30 June 1964: 59

After 30 June 1964:                60

 

The other way that they may have purchased a property with their Super money could have been by setting up a SMSF but it would have had to have been an investment property (this certainly would not work for someone who is looking to leaving Australia for a number of reasons).

There is such a thing as the First Home Super Saver Scheme where it's possible to take money from super for purposes of contributing to a home purchase however its not the whole balance that can be withdrawn but rather contributions (which are limited) that have been made: First Home Super Saver Scheme | Australian Taxation Office (ato.gov.au)

Hope this helps and sorry it's probably not the answer you are looking for.

Regards

Andy