My mum is a foreign resident, she has always been living overseas. She is not intended to reside in Australia.
She has a rental property in Australia, and receiving rental income.
She wants to set up an account with an Australian Superannuation fund and makes deductible personal super contributions.
My question is, when she reaches 65 years old,
1) is there any restriction for her to withdraw monies from the super fund.
2) how will she be taxed when she withdraws monies from the super fund.
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1 replies
Author: KaraATO(Community Support)Community Support 17 Sept 2025
Hey @lin208806,
It’s best your mother checks with the super fund first, since not all funds accept money from non-residents.
If the fund allows it, she can use her super once she reaches preservation age and retires.
How much someone can put into their super fund and whether their fund can accept also depends on:
The tax paid on super contributions generally depends on whether:
- the contributions are from before-tax or post-tax income
- concessional or non-concessional contribution caps are exceeded
- high-income earners.
Based on what you've said, your mother will be making after-tax (non-concessional) contributions.
There's a limit of on how much someone can contribute each financial year before paying extra tax. This is called a non-concessional contribution cap. The current cap is $120K.
Super may be taxed at 3 points in its life cycle:
- on contributions
- on the investment earnings in the fund, which in the accumulation phase are taxed at 15%, and
- retirement phase are tax-free – subject to a lifetime limit on the amount someone can transfer into retirement phase (the transfer balance cap) on withdrawal, as explained in this page.
There's a taxable and tax-free component within everyone's super account. The superfund can provide a breakdown of much of the money in someone's super account is tax-free or taxable.
