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CPF Interest (Foreign Super)

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Newbie

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Hi,

 

I had CPF account (like Super) in Singapore before and had been declaring interest tax every financial year but the funds had remained in Singapore. I have read somewhere that CPF is not really an equivalent of Super but is more likely regarded as a Savings Account. Am I correct in declaring the interest every year?

 

This year, I have finally decided to transfer all the funds to Australia and would only declare this years' interest but I am not sure if it should be all the accumulated interest since becoming an Australian resident.

 

I don't want to be taxed twice while I can still amend the previous years' Tax Return.

 

I would appreciate any assisstance on this matter. Thanks!

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Hi @Royalcards,

 

Thank you for your post. The website advises - If the lump sum from the foreign super fund is paid to you (or to another person or entity on your behalf), then the assessable amount of the payment and any applicable fund earnings must be included in your assessable income and will be taxed at your marginal rate. The remainder of the transfer will not be subject to income tax.

 

If you have reported the growth in previous years you may need to amend those returns. If you have been receiving regular payments or interest from the fund you may need to include this each year as a foreign pension. However we would need more information to advise.

 

If you believe the payment is different to this you can post another question here. You may also email superadvice@ato.gov.au, they will respond in writing to your specific scenario.  

 

Hope this helps.

 

Regards,

Jodie2. 

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Hi @Royalcards,

 

Thank you for your post. The website advises - If the lump sum from the foreign super fund is paid to you (or to another person or entity on your behalf), then the assessable amount of the payment and any applicable fund earnings must be included in your assessable income and will be taxed at your marginal rate. The remainder of the transfer will not be subject to income tax.

 

If you have reported the growth in previous years you may need to amend those returns. If you have been receiving regular payments or interest from the fund you may need to include this each year as a foreign pension. However we would need more information to advise.

 

If you believe the payment is different to this you can post another question here. You may also email superadvice@ato.gov.au, they will respond in writing to your specific scenario.  

 

Hope this helps.

 

Regards,

Jodie2. 

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Newbie

Replies 1

Thanks Jodie2.

 

Yes I have been receiving interest every year on it and it stays on the funds as I am not allowed to withdraw it until I surrendered my Singapore Permanent Residenship. From the website link you gave, I guess the question is if CPF Singapore a foreign super?

 

I have been scourging the web over the years for information whether CPF Singapore is considered a foreign super and I can't find any (although I may have come across some article saying it is not, since it is not a managed fund). I have also been told in one of my chats with an ATO agent that I can declare the interest growth every year as foreign income, so basically treating it as Savings Interests growth. If that is wrong, then I'm beat. Smiley Sad  I have declared several years and I am not sure whether I can still amend it. Will they allow me to object on the tax returns more than 2 years?

 

 

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Hi @Royalcards,

 

Thank you for your reply. You mentioned CPF which generally means Constitutional protected fund. So I would assume it is a super fund. You may need to speak directly to them to find out if they are a super fund or some other financial institution. You can email superadvice@ato.gov.au for further assistance.

 

If it is foreign income you may need to declare it and the interest earned from it. You can write to our early engagement team to assist you in working this out. 

 

Hope this helps.

 

Regards,

Jodie2.