Superannuation

Departing Temporary Residents

Since July 2002, individuals working in Australia on temporary visas have been allowed early access to their superannuation benefits if they depart from Australia permanently and their visas have expired. This means their superannuation can be released on departure prior to retirement age (55). No tax is payable by the departing individual, but the superannuation fund withholds tax at the rate of 30% on the benefits withdrawn, except for any undeducted (post tax) contributions and post-1994 invalidity components, if any. The Government currently estimates that the superannuation balance of past and present temporary residents is approximately $1.2 billion.

Note that if the individual who has left Australia is close to retirement it may be better to leave the funds in place and wait to receive concessional taxation on retirement. Of course, they also need to consider the tax implications in their new country of residency.

The "Departing Australia Superannuation Payment" (DASP) can be applied for online at the Australian tax Office (ATO) - www.ato.gov.au.

Complete the Superannuation Inquiry form