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Re: temp resident for 4 years then moved back to UK

Newbie

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Replies 5

Hi, 

 

I was previously resident in Australia for 5 years and have accumulated a supernannutation benefit (deferred retirement benefit). Do I have the option to cash this in now and remit the cash funds to the UK? Are there any tax implications for doing so? If so, what tax is payable and can I reclaim this?

 

If I wait until 55 can I draw the average wage option amount, and thereafter draw the remaining at my preserved age of 60? What tax would be applicable here? or do I need to wait until 60 before drawing benefits. 

 

In summary, I'd like to know the best way in which I can get the cash funds across to the UK, ensuring the minimum amount of tax is chargeable and what I need to do to complete this. 

 

Welcome any wisdom, thank you

 

Regards

 

Charlia4

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ATO Certified Response

ATO Community Support

Replies 4

Hi @Charlie4

 

Your super has three parts: tax-free component, taxable component (taxed element), and taxable component (untaxed element). You'll need to know the split of your super to know how it will be taxed.

 

If you held a temporary visa which now cancelled or expired, you can apply to release your super under a Departing Australia Superannuation Payment. The tax rate for this depends on whether you were on a working holiday maker visa or not too, and varies between 35%-65% for the taxable components.

 

Or, you can access your super when you reach preservation age and retirement requirements. How the payment will be taxed depends on the components that make up your super. You need to reach your preservation age and retire, or reach 65, before you can access your super in this way. The way the payment is taxed will depend on your age at the time of access, but is generally your marginal income tax rate.

 

You can see the full list of tax rates for your scenarios on How DASP is taxed and How tax applies to your super, and see individual income tax rates on our website.

 

5 REPLIES 5

Most helpful response

ATO Certified Response

ATO Community Support

Replies 4

Hi @Charlie4

 

Your super has three parts: tax-free component, taxable component (taxed element), and taxable component (untaxed element). You'll need to know the split of your super to know how it will be taxed.

 

If you held a temporary visa which now cancelled or expired, you can apply to release your super under a Departing Australia Superannuation Payment. The tax rate for this depends on whether you were on a working holiday maker visa or not too, and varies between 35%-65% for the taxable components.

 

Or, you can access your super when you reach preservation age and retirement requirements. How the payment will be taxed depends on the components that make up your super. You need to reach your preservation age and retire, or reach 65, before you can access your super in this way. The way the payment is taxed will depend on your age at the time of access, but is generally your marginal income tax rate.

 

You can see the full list of tax rates for your scenarios on How DASP is taxed and How tax applies to your super, and see individual income tax rates on our website.

 

Newbie

Replies 3

Thank you this is all very helpful. I was on a working holiday visa. Is the tax rate of c 65% the same regardless of whether I take it now or wait until the preservation age/retirement age? just weighing up whether it's better to wait or not. 

ATO Community Support

Replies 2

Hi @Charlie4

 

65% rate only applies to withdrawing via DASP.

 

Ari

Newbie

Replies 1

Thank you Ari. Sorry to ask yet another question - So 65% applies if via DASP. Is DASP the only option if I have already departed? If I wait until preservation age/retirement age what is the tax rate then? Is it different or does it class as DASP at 65% regardless of when taken, if out of the country?

ATO Community Support

Replies 0

Hi @Charlie4,

 

If your employer paid super guarantee (SG) whilst you were on a working holiday visa, withdrawing your super via DASP is generally the only option to access it. Thereafter DASP tax rates would be applicable. However if you are in a defined benefit scheme you may have to wait until you meet preservation age. You can contact your fund directly to discuss this. You can also use the links provided for further information.

 

Link-

Temporary residents and super.

Eligibility for DASP.

 

All the best.