Temporary Residents - Superannuation Access and Transfers
We do not assist in the preparation or submission of Departing Australia Superannuation Payments (DASP) requests for temporary residents; they can be made very simply through the Australian Tax Office's DASP facility. The exception are those situations where temporary residents have amassed very significant amounts of superannuation - often dating back 10 or 20 years - when it may be worthwhile investigating how to transfer this back as tax effectively as possible to their country of residency.
Under the Temporary Residents’ Superannuation Legislation Amendment Act 2008 a temporary resident (who is not an Australian citizen, New Zealand citizen or a permanent resident) whose temporary visa has ceased to have effect can claim their Departing Australia Superannuation Payment (DASP) from their super fund within 6 months of their departure from Australia.
However, if a temporary resident does not claim their DASP from their super fund within 6 months of departing Australia, their super benefit is treated as unclaimed money and the super fund must pay it to the Australian Taxation Office (ATO). The temporary resident will be able to reclaim their super benefit (less the DASP withholding tax) directly from the ATO at any time where certain conditions have been satisfied.
If the departed temporary resident later becomes an Australian citizen, New Zealand citizen or the holder of a permanent visa, they can direct the ATO to rollover their super benefit from the ATO into a super fund. It is not clear what level of return will be paid on funds held by the ATO, but they will likely be linked to CPI increases and are unlikely to match investment returns. Legislation has also increased the rate of withholding tax payable on a DASP paid from a taxed fund to 35%. Substantially higher tax rates also apply to the DASPs where individuals have been on working holiday (WHM) visas and later withdraw super.
If you would like to arrange professional advice, subject to the comments above regarding the situations in which we provide advice, please complete the Inquiry form below providing details and you will be contacted promptly. You will receive a fee quotation in advance of any advice or services being provided.