Managing your super as an Australian citizen or permanent resident
For Australian citizens and permanent residents, moving overseas generally does not allow you to access your superannuation until you meet a condition of release, similar to being in Australia.
Conditions of release
Conditions for accessing your super as an Australian citizen or permanent resident while overseas include reaching your preservation age and retiring, turning 65, permanent incapacity, a terminal medical condition, severe financial hardship, or compassionate grounds.
Contributions from overseas
If you work overseas for an Australian employer, they are typically required to pay the Superannuation Guarantee. If you work for a foreign employer, you can make voluntary contributions, but be aware of potential tax implications in your host country.
Accessing super for temporary residents: the DASP
Temporary residents who have left Australia permanently and whose visa has expired or been cancelled may be eligible to claim their super through the Departing Australia Superannuation Payment (DASP) scheme.
DASP eligibility
To be eligible for a DASP, you must have entered Australia on a temporary resident visa (not subclasses 405 or 410), your visa must have expired or been cancelled, you must have left Australia, and you cannot be an Australian or New Zealand citizen or a permanent resident.
The DASP process
The ATO's online system is the easiest way to apply for a DASP after leaving Australia and your visa has ceased. If you do not claim within six months of your visa ending, your super may be transferred to the ATO as unclaimed super, which you can then claim from the ATO.
Key considerations for all expats
Consolidate your super funds
Consolidating multiple super funds can reduce fees and is possible even when overseas. The ATO's online services via myGov can help you find and combine your funds.
Review your insurance coverage
Moving overseas can affect insurance coverage within your super fund. Check with your fund to understand any changes or cessation of coverage.
Tax implications overseas
While super earnings are taxed concessional rates in Australia, your host country may have different tax rules and reporting requirements. Seeking advice from an international tax specialist is recommended.
Transferring to New Zealand
Australia has an arrangement allowing superannuation transfers to a KiwiSaver account for eligible New Zealand residents. This is currently the only country with this arrangement.
Australian citizens vs. temporary residents: what you need to know
| Feature | Australian Citizen or Permanent Resident | Temporary Resident Leaving Australia |
|---|---|---|
| Access while overseas | Not typically permitted until a condition of release (e.g., retirement) is met. | Can apply for a Departing Australia Superannuation Payment (DASP) after departure. |
| DASP Eligibility | Not eligible. | Eligible, provided visa conditions are met. |
| Super remains active | Yes, your fund remains active and invested according to your chosen strategy. | Your fund may transfer your super to the ATO if you don't claim your DASP within six months. |
| Overseas contributions | Can make voluntary contributions. Employer contributions may depend on employer residency. | No further contributions are possible under the DASP scheme. |
| Transfer overseas | Generally not possible, except for transfers to a KiwiSaver account in New Zealand. | Must be paid as a lump sum. |
The importance of professional advice
Expat superannuation can be complex, and specialist financial and tax advice is crucial to navigate the rules and avoid potential issues. You can also find information on official government resources, such as the Australian Taxation Office (ATO) website.
Conclusion
Understanding how moving overseas affects your superannuation is essential for financial planning. Whether you're an Australian citizen or a temporary resident, knowing the relevant rules and seeking professional advice will help you manage your retirement savings effectively as an expat.
