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Getting Super back if on a PR Visa

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  • 26-02-2015 8:57am
    #1
    acb
    Registered Users Posts: 120 ✭✭


    Anyone had any success getting their super back if on a PR visa?
    I know its possible if you are on a temporary visa of some sort but there seems to be confusion surrounding those of us on PR or holding citizenship.
    This ATO Link is only for those on temporary visas and you sign a declaration saying you won't be returning and so they release it to you.

    When i looked into it, info kept saying that if you have a right to return then no you cannot get it back and have to wait until retirement age to access it.
    Someone on Irish Families in Melbourne said if you sign a declaration saying you will not return you can claim it back, but i don't know!
    I have even read threads on PomsinOZ where some English couples, moved to australia, brought over their UK pensions also as they'd plans to stay permanently and then decided about 15 years later to move back to the UK but faced the problem of not being able to moved their pension back!!!!
    Seems crazy how you can transfer your pension over and can't bring your Ozzie one back here :(


    It appears to be an oversight I think. It would make sense that once your PR expires and you don't have a right to return that you should have access to your super. But again Ive heard of a guy who's PR visa has expired 3 years and he still hasn't gotten his pension contributions back. So its not looking too good. Maybe ATO refuse it because you could apply for a PRR visa when the PR expires...but i think for that one you need to be in Australia when the PR visa expires or have spent a considerable amount of time in Australia before they'll grant it

    Found this on the taxback.com
    "If you are an Australian Citizen, an Australian Permanent Resident, a New Zealand Citizen or for some other reason have an option of retiring in Australia and have access to the age pension, then you will generally not be eligible for payment of your superannuation benefits until you have reached retirement age".

    Ours is in the region of about $40k and know we need to cancel all insurance premiums etc associated with it. If you really have to wait until retirement age- sure there'd be nothing left! We d have been netter off if it transpires that we can't get our pension transferred just going out on a temporary visa and not eh PR one.

    We have an accountant in Australia doing our last tax return and have asked him to look into it for us. He's Australian but has an Irish gf so hopefully he finds out with certainty. Will update this thread if i find out anything, but am hoping in the meantime others might know something :)


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    #2
    FernandoTorres
    Registered Users Posts: 650 ✭✭✭FernandoTorres


    I'm pretty sure you can get it back if you fully revoke all rights to coming back to Australia permanently. Probably best to call the ATO directly for clarification. It would be fully taxable though if you take it out.

    I think it's fair enough that you can't just withdraw it. They do it so that the money stays in Australia. The Super industry is worth billions to the economy. In fact the UK is toughening up their regulations to stop people moving their pension abroad.

    I also think you should look deeper into whether this is a good idea for you or not. The Australian system is light years ahead of the Irish system and if you kept it here it would be tax free when you reach retirement age. You also have a lot more options when that time comes i.e withdraw as a lump sum, set up a pension etc. In Ireland you're pretty much forced to buy an annuity with a life company.

    You mention that if you left it it would waste away. What's it invested in? You will still be earning investment returns and distributions which over the long term should more than cover any fees. You'd be paying the same fees in Ireland but have way less investment options to choose from and it would be taxable at retirement. I'd definitely get some proper independent advice before jumping into anything. Paying a few hundred dollars should be more than worth it in the long run. Just don't go near any of the banks!


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    #3
    acb
    Registered Users Posts: 120 ✭✭acb


    Thanks fernando. You've given us a lot to think about!


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    #4
    mighty magpie
    Registered Users Posts: 981 ✭✭✭mighty magpie


    Do i need super insurance if i have no intentions of getting PR or Citizenship in Australia?


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    #5
    d.pop
    Registered Users Posts: 271 ✭✭d.pop


    mighty magpie wrote: »
    Do i need super insurance if i have no intentions of getting PR or Citizenship in Australia?

    You don't have a choice, it's like a compulsory pension payment.
    Your employers will deduct it from you wages.
    Only question after that is can you take it with you when you leave the country.
    If no PR and no citizenship, I.e a temp resident them the short answer is probably yes you can take it, probably after paying a nice bit of tax on lump sum though.


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    #6
    mighty magpie
    Registered Users Posts: 981 ✭✭✭mighty magpie


    d.pop wrote: »
    You don't have a choice, it's like a compulsory pension payment.
    Your employers will deduct it from you wages.
    Only question after that is can you take it with you when you leave the country.
    If no PR and no citizenship, I.e a temp resident them the short answer is probably yes you can take it, probably after paying a nice bit of tax on lump sum though.

    Thanks but I think you've misunderstood.

    I know paying superannuation is compulsory (my employer is currently doing that for me) and that I will pay around 35% tax on it when I leave.
    My question is around the superannuation insurance that comes out of my super holdings each quarter. It was around $70 last quarter.

    Can I remove this?


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    #7
    d.pop
    Registered Users Posts: 271 ✭✭d.pop


    mighty magpie wrote: »
    Thanks but I think you've misunderstood.

    I know paying superannuation is compulsory (my employer is currently doing that for me) and that I will pay around 35% tax on it when I leave.
    My question is around the superannuation insurance that comes out of my super holdings each quarter. It was around $70 last quarter.

    Can I remove this?

    Oops, sorry. Don't know.
    Can you call the superfund? There are various fees and mandatory charges but maybe not all are totally mandatory.
    I'm with ANZ and they seem ok to deal with over phone, I pay a good bit more than $70 a quarter but have good life insurance cover as a result but maybe it's negotiable...?
    I asked them about fees if I went overseas to work for a few years and they were pretty approachable.
    Worth a call?


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    #8
    massdebater
    Registered Users Posts: 2,251 ✭✭✭massdebater


    mighty magpie wrote: »
    Thanks but I think you've misunderstood.

    I know paying superannuation is compulsory (my employer is currently doing that for me) and that I will pay around 35% tax on it when I leave.
    My question is around the superannuation insurance that comes out of my super holdings each quarter. It was around $70 last quarter.

    Can I remove this?

    Yes this can be removed, I cancelled the insurance on mine a couple of months ago. I quit my job at xmas and phoned my super company to remove all non-mandatory charges from my super account. They removed the insurance and one other thing (I can't remember what it was).


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