When it comes to managing Australian expat superannuation, the considerations that an expat needs to take are very different to that of an average superannuation investor in Australia.
This is one of the main reasons why you need to deal with a specialist when it comes to managing your superannuation when you are offshore.
The good news is that the superannuation laws and regulations do not differentiate between a resident and a non-resident.
Provided an Australian expat meets the relevant Superannuation Industry (Supervision) Act contribution rules, a fund trustee is able to accept contributions from a non-resident.
The Australian superannuation system provides a very effective form of retirement planning and, used correctly, can ensure that when it comes time to slow down you have a portfolio that provides for you and your family well into your later years.
It is important to have the peace of mind knowing that what you are achieving now will assist you in obtaining a self-sufficient retirement in the future.
Listed below are the top 4 tips for managing your Australian expat superannuation whilst you are an expat
If you have a Self-Managed Super Fund (SMSF) be very careful as an Australian expat…
Take control of your superannuation – just because you are an Australian expat…
Investigate consolidating your superannuation funds – most Australian expats have…
Don’t forget any pensions and provident funds that you may have accumulated…
Australian Expat Superannuation Contribution Rules
Australian expats may be eligible to claim personal super contributions as a tax deduction if they are considered an eligible person as defined in s290-160 of ITAA97. One of the key requirements is that the member earns less than 10%# of their income from eligible employment in the year the contribution is made.
For Australian expats, income attributable to employment outside Australia is non-assessable and not counted in this ‘10% test’. As such, a non-resident with Australian-sourced income such as rental property income may find it beneficial to claim a tax deduction on personal super contributions.
Note: A Australian expat’s income from interest, dividends and royalties is subject to withholding tax, is excluded from assessable income and cannot be offset by claiming a tax deduction.
# Legislation has now passed to abolish the 10% employment income test from 1 July 2017.
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