What happens to your super when you move overseas?

You may be considering withdrawing your superannuation balance early if you are planning a permanent overseas move, whether this is to help you afford the move, or to invest the funds differently while in the new country. 

If you’re an Australian citizen or permanent resident and moving overseas, the Australian Tax Office (ATO) outlines that you cannot access your super early. 

This is true even if you are moving away permanently. Your super will still be regulated by the same rules, so you’ll need to reach the preservation age and retire or satisfy another condition of release before you can access it.

Keep in mind that if you're the trustee of a self-managed Australian super fund and moving overseas for an extended period, the super fund will face the concessional tax rate only if it meets the definition of an Australian super fund throughout the year. This definition requires that the central management, control and assets of the fund should be mainly in Australia.

Meaning, this could cause significant complications to your SMSF if you do move. Consider speaking to a financial advisor before you leave the country.

Residents on a temporary visa who have worked and earned super in Australia can withdraw their super when moving overseas. This is referred to as a departing Australia superannuation payment (DASP), and this facility is available only for those who aren’t citizens of Australia or New Zealand. 

You become eligible for this payment after you have left Australia and your visa has been cancelled or has expired. Keep in mind that some of your superannuation funds may be taxed upon withdrawal. 

According to the ATO, you can generally claim a departing Australia superannuation payment if the following apply:

• “You accumulated superannuation while working in Australia on a temporary resident visa issued under the Migration Act 1958 (excluding Subclasses 405 and 410)
• Your visa has ceased to be in effect (for example, it has expired or been cancelled)
• You have left Australia and you do not hold any other active Australian visa
• You are not an Australian or New Zealand citizen, or a permanent resident of Australia”.

If you’re leaving Australia permanently to make New Zealand your home, you can transfer your super, thanks to the Trans-Tasman retirement savings portability rules. 

You have more choice about your superannuation if you were to move to New Zealand. You can either leave your super in Australia or transfer it to a New Zealand KiwiSaver scheme. 

KiwiSaver is a voluntary savings scheme set up by the New Zealand government to help people save for retirement. You can transfer to a KiwiSaver scheme only if you have permanently emigrated to New Zealand, and you’ll need to sign a statutory declaration saying so. You will also have to provide proof of residence at a New Zealand address. If you’re eligible, you’ll need to have your New Zealand Inland Revenue Department (IRD) number for the transfer. 

In the KiwiSaver account, your retirement savings will be held in two parts - the Australian-sourced component and the New Zealand-sourced component. You’ll be able to access the Australian-sourced savings when you reach the age of 60 and retire, while for the New Zealand component, you’ll have to reach the age of 65.

If you have multiple super accounts in Australia, you may want to consolidate them into one before you transfer to the KiwiSaver scheme. You can combine different super accounts through the myGov online portal. This may help you save on fees and charges. 

Only investments in ‘complying superannuation funds’ regulated by the Australian Prudential Regulation Authority (APRA) are eligible to be transferred to a KiwiSaver scheme.