What happens to my super if I move overseas?

What happens to my super if I move overseas?

Your Australian super balance should continue to grow while you’re overseas—depending on what investment options you’ve chosen and the fees being charged. You can still make contributions to your Australian super while you’re overseas, though there are limits to how much you can add each year.

If you’re working overseas for an Australian employer, then it must make any statutory super guarantee contributions. If you’re working overseas but not for an Australian employer, you will have to work out what super requirements apply in the country where you are working. Your overseas employer will have no obligation to feed into your Australian super fund.

Australia has agreements with certain countries to make sure you don’t get caught by what’s called ‘double superannuation coverage’. That’s where if you work overseas for an Australian employer, it doesn’t have to pay any super guarantee contributions (or equivalent) in both Australia and the country where you are working.

You can check online with the ATO which countries have these bilateral social security agreements with Australia. Your employer may need to apply for a certificate of coverage for you to show to any overseas authority that your Australian employer is making the super contributions. It’s a good idea to check all this with your employer before you head overseas.

What do I do with my super if I move overseas?

While you’re living overseas, it’s often worth regularly checking how your superannuation is going, so you can be confident it is performing well and not underperforming. As an overseas employer may not be obliged to regularly deposit money into your super fund as part of the Super Guarantee, if your super fund has average or low performance and charges high fees, your retirement savings could erode over the time you’re living overseas

If you have multiple super accounts to your name (such as if you set up a new account each time you started a new job), it might be wise to consider consolidating them into one to reduce how much you’ll be paying in fees and charges. You can do this via the myGov website if you have an account. Make sure you check first so you don’t lose out on any benefits from a fund you choose to leave.

Even those with just the one super fund may want to look at the fees they’re being charged, including whether they’re a percentage or a flat rate. . It may be worth comparing alternative super fund options and transferring your balance if you think another provider’s performance and fees structure may better suit your needs during this time you’ll be overseas.

If you only have a small amount in your Australian super account, then you may want to contact your super provider to advise them that you’re heading overseas. This, plus updating your contact details, can hopefully prevent the fund being handed over to the ATO as an inactive low balance account.

You may also want to check with your Australian super provider what else may happen if it considers your account to become inactive. For example, if your fund doesn’t receive a contribution for some time, you may no longer benefit from any insurance cover your super fund offers.

If you are paying for some insurance with your super provider, it might be wise to check if that cover still applies while you’re overseas. If not, you could consider cancelling this cover for the duration and potentially saving some money..

Can I take my super with me if I move overseas?

If you’re an Australian citizen or permanent resident and you move overseas to live and work, you typically can’t take any money you have in Australian super with you. The money stays in Australia, invested in whatever super options you’re signed up for. The one exception is when moving to New Zealand, you may be able to transfer your Australian superannuation over to KiwiSaver.

The Australian Taxation Office (ATO) says that regardless of whether you intend to stay overseas temporarily or permanently, the same super rules apply as if you’d stayed at home.

“This means you can’t access your super until you reach preservation age and retire or satisfy another condition of release.”

Can I transfer my super if I move to New Zealand?

New Zealand is the one exception where you may be able to transfer your Australian super fund to a KiwiSaver scheme; that country’s voluntary super system, thanks to a trans-Tasman agreement between the two countries.

This only applies if you intend to emigrate to New Zealand on a permanent basis. There are a number of conditions you need to meet before you are able to transfer your money.

For example, you need to be in a participating Australian Prudential Regulation Authority (APRA)-regulated super fund; you’ll need proof of a New Zealand address; and you’ll need to have a KiwiSaver scheme set up. You’ll also need a New Zealand Inland Revenue Department (IRD) number.

There are several KiwiSaver schemes to choose from, so you’ll need to find one that suits your needs. You’ll need to check what fees and charges may apply for any transfer from both your Australian super provider and chosen KiwiSaver scheme.

There are no limits to how much you can transfer between an Australian super fund and a KiwiSaver scheme, but the ATO says you must transfer the lot. The amount transferred will not be taxed.

It could be a good idea to consider some independent financial advice before transferring any Australian super to a KiwiSaver scheme. In some cases, you may decide that you’re better off keeping your money in Australia, especially if you think there is a chance you may return to Australia some time in the future.

What happens to my super if I am a temporary resident?

If you are in Australia on a temporary resident visa and are planning to leave the country, you may be able to claim any Australian super you earned here when you go by applying for a Departing Australia Superannuation Payment.

The amount you get back may be subject to different tax rates, depending on what visa you hold and how you are classified as a temporary worker in Australia.

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