When I move to Australia I understand that 12% of my wages will be deducted and placed into a government superannuation account that I cannot touch until I retire. What if I move back to the United States? Do I lose all of the money contributed to this Australian retirement account?
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Fred Rollo
It isn't quite as dire as that. There is a compulsory superannuation regime in Australia. Employers are obliged to contribute to a superannuation scheme for each employee ( minimum 9.25% of base salary as from July 1 this year).
Executive employees may be offered a "salary package" arrangement whereby the employee can choose how much should be contribute.within the statutory limits. The minimum must be contributed up to a maximum cap of $25,000 pa ( increasing to $35,000 pa for those 60 yo and above as from July 1 this year).
Most employers allow their employees to nominate which fund the contributions are paid into. It would only be paid into a government fund if you are employed in government.
The funds cannot usually be accessed until retirement age ( that depends on your age now, but can be assumed to be 65/66 for Gens X/ Y). The tax rules for superannuation funds ( which are always a trust) are concessional. The standard rate on income earned by superannuation funds is 15%.
If you depart Australia permanently prior to retirement age, you may access the balance in your fund.
You can only do this if you have been in Australia on a temporary visa (but not subclass 405 or 410) and after you leave Australia . You can make the claim for withdrawal to the Tax Office electronically.
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582 weeks ago
Executive employees may be offered a "salary package" arrangement whereby the employee can choose how much should be contribute.within the statutory limits. The minimum must be contributed up to a maximum cap of $25,000 pa ( increasing to $35,000 pa for those 60 yo and above as from July 1 this year).
Most employers allow their employees to nominate which fund the contributions are paid into. It would only be paid into a government fund if you are employed in government.
The funds cannot usually be accessed until retirement age ( that depends on your age now, but can be assumed to be 65/66 for Gens X/ Y). The tax rules for superannuation funds ( which are always a trust) are concessional. The standard rate on income earned by superannuation funds is 15%.
If you depart Australia permanently prior to retirement age, you may access the balance in your fund.
You can only do this if you have been in Australia on a temporary visa (but not subclass 405 or 410) and after you leave Australia . You can make the claim for withdrawal to the Tax Office electronically.