OS Oz Citizen Claiming Back Superannuation

daveco23

Hi there,
My wife, (Oz Citizen but living in Ireland) is trying to withdraw her Super, based on the fact that we live in ireland and do not plan to go back.
Now, when I claimed back my Super a few years ago, I had to show I had permanently left the country, which I did by sending over a copy of my expired Visa and exit stamp on my passport. (Am an Irish Citizen)
Wife would have no such expired visa or exit stamp, and Super T and C's decree that you must have permamantly left the country. How do we go about proving she has left permanently so she can get her money?
Thanks

Jagera

quick google:

http://www.aust-immig-book.com.au/if_superann.html

Taking super benefits – Leaving Australia
Previously, superannuation fund members who permanently left Australia were able to take their superannuation benefits with them. However, since 1998, these rules have been severely tightened.

Now your superannuation benefits cannot be taken out of the superannuation fund unless you meet the standards noted above, for instance retirement after your preservation age (generally 55). This means that superannuation benefits cannot be taken from Australia where an individual departs Australia at age 40 years and the person never intends to return to Australia. The individual’s superannuation benefits would need to remain in Australia until the individual reaches his/her preservation age.

The federal government has proposed that, in the future, superannuation/pension agreements (similar to tax and social security agreements) will be negotiated between Australia and other countries, to deal with these issues

and

http://www.fido.gov.au/fido/fido.nsf/byHeadline/Early%20release%20of%20superannuation%20funds

Leaving Australia permanently

Contact the ATO because you may be eligible to claim your super when you permanently leave the country if you have worked in Australia as a temporary resident.

If you leave the country and haven't claimed your super at least 6 months before you leave, it will be paid to the ATO. You will then have to claim it back from the ATO and it will be repaid after normal taxes are paid.

This payment is not available for permanent Australian or New Zealand citizens because they have the option of retiring in Australia

40701085

Hey Daveco,
Was wondering if you had any joy with reclaiming your Super in the end? Would be interested to know how u got on as your case has some parallels with my situation & will be tackling this soon,
Also (if you got it back) - did they tax you heavily?
Cheers
A

Theresalwaysone

You can't. It doesnt matter that she has moved away permanently. Oz citizens cannot withdraw their Super until their retirement age, 65. There are som provisions to withdraw it earlier such as Financial Hardship or for healthcare for a close relative, but its unlikely your wife would fill the conditions needed.

The leaving Australia permanently condition is for travellers or those on non-residency Visas.

I worked in a couple of Superannuation firms and this question comes up all the time. Any more questions feel free to ask.

Theresalwaysone

Actually, you could probably arrange for her Super to be transferred to an irish pension fund.

Not advised though for a variety of reasons.

40701085

Theresalwaysone wrote: »

You can't. It doesnt matter that she has moved away permanently. Oz citizens cannot withdraw their Super until their retirement age, 65. There are som provisions to withdraw it earlier such as Financial Hardship or for healthcare for a close relative, but its unlikely your wife would fill the conditions needed.

The leaving Australia permanently condition is for travellers or those on non-residency Visas.

I worked in a couple of Superannuation firms and this question comes up all the time. Any more questions feel free to ask.

Hey theresalwaysone, thanks for the input, maybe you could throw some light on this situation...
I'm not a citizen but WAS a permanent resident, i.e. had residency status when contributing to my super. Now I've left oz & my residency has lapsed & obviously my super is still sitting in oz. So as citizen/residency restrictions no longer apply to me, I was wondering if I'd be considered under "temporary resident" status from here on out? I presume under this situation I could claim it back...

Another thought springs to mind - if I were to leave it in oz til I'm 65, could I then withdraw it in the normal way like any other ozzie or do they still hit me with 35% tax cos I'm non-resident?

I've trawled the immi.gov & ato websites but they don't seem to have any info on anomalies like mine

Theresalwaysone

If you have no option to go back to Australia then yes, you can claim it back.

The way it works is, Oz Citizens/Residents who leave the country for work, a spouse, whatever reason BUT still hold the OPTION to go back whenever they want CANNOT claim the super back. There is a special case in the 2nd year WHV but thats not important for you.

Because you can't go back then you can claim back your Super. Id advise getting onto the department of IMMI and have them send you a letter declaring your visa void, have it certified by a garda/judge whatever and then send it back to the super company with the forms for the DASP condition (mentioned above) of payment.

Out of interest, which company are you with? Its its one of the ones I worked for I may be able to get you sorted pretty quick.

Theresalwaysone

Oh and re: the tax thing. If you leave it in Oz til your 65 there is no tax payable on it.

If you withdraw it now its 35%.

40701085

Thanks a mil for those replies, the process seems logical when you put it like that.
I may well end up leaving it in til retirement age now, as 35% is a fair whack to lose, but then you never know when times are this bad when you might need it :eek:
The company is called Onepath, not sure if you've heard of them?

Theresalwaysone

Havent worked for OnePath so dont know their own processes.

IF you need to withdraw it under 'financial harship' (if the times get bad) then you will only be taxed 20% or thereabouts. The conditions for this withdrawal method are different for each company but usually you need to provide proof you are struggling/behind payments in mortage/under CC debt things like that.

35% is a disaster of a tax rate. Im leaving here in a few weeks and Im claiming mine back but its such a big hit to take. Makes sense though because if it wasnt taxed for people like us its jst tax free income. The rate at which is taxed should prob be reviewed to take into consideration your effective income tax rate when withdrawing but that'll never happen.