Withdrawing super if moving overseas?

Morning guys,

Just a few questions if you don't mind.

1. If I eventually decide to move overseas, can I withdraw all of my super and what are the ramifications of it?

2. Also I understand I can buy property using money in the super?

3. Can I somehow use super earlier (say when I'm 50) if I want an early retirement (to add shares in super to my current shares portfolio and live off dividends?

Thanks a lot.

 

These restructions have been tightened up considerably.

Unless you were a short term resident here then probably not.
Also you would probably lose a large chunk of it in tax.

2. No you can't. a SMSF trustee could buy property and you could be a member of the SMSF.

3. Yes - terminal illness.

 

Awesome thanks.

So the way around it is to establish a SMSF and buy a property using the money from my super?

 

Your super is currently in a trust and the smsf is just a trust you manage. You can then rollover your member balance to the SMSF once it is set up.

The SMSF can then borrow to buy property, under certain conditions such as it using a custodian trustee to own the property

 

Sounds pretty good, I'll look into it. Thanks.

 

Hi Terry

does point three apply for those who are not meeting hardship provision?

Kind regards

 

Yes.

 

A terminal medical condition is a condition of release.See schedule 1 SISAct
SUPERANNUATION INDUSTRY (SUPERVISION) REGULATIONS 1994 - SCHEDULE 1 Conditions of release of benefits

A terminal medical condition is defined in the sis regulations reg 6.01A
SUPERANNUATION INDUSTRY (SUPERVISION) REGULATIONS 1994 - REG 6.01A Meaning of terminal medical condition

Quote:
Meaning of terminal medical condition

For Schedule 1, a terminal medical condition exists in relation to a person at a particular time if the following circumstances exist:

(a) two registered medical practitioners have certified, jointly or separately, that the person suffers from an illness, or has incurred an injury, that is likely to result in the death of the person within a period (the certification period ) that ends not more than 24 months after the date of the certification;

(b) at least one of the registered medical practitioners is a specialist practicing in an area related to the illness or injury suffered by the person;

(c) for each of the certificates, the certification period has not ended.

 

becoming a non resident for tax purposes is not a condition of release unless you were a temporary resident. if you are an australian citizen you are not a temporay resident.

rules changed around 1998 from memory.

 

SMSFs and non residents face very complex rules that can be extremely difficult to control. Early advice is recommended. SMSFs can also become non resident with issues

Financial, tax and legal advice will all be required.

 

Why would you want to do this ? Super in Australia is a great tax shelter, once you are receiving the dividends outside Super they are subject to the ravages of your new tax residence and the franking credits are useless.

I am non-resident and am doing the reverse, gradually putting money from my external share holdings back into Australian super (shares) to protect it. If you don´t have enough dividends to live off it doesn't matter, just run down the holdings outside of Super while the holdings inside Super compound and appreciate.

 

Hey Casteller, if you don't mind me asking - how long were you out of the country before you're considered a non resident?

I have filled out the form on the ATO and it was inconclusive. I am starting with a 1 year working holiday in Germany but may stay on longer, and i'm not sure if/when I'm going to lose my tax residency status.

 

The answer to this would be irrelevant to your situation.

 

Departing AU and intending to temporarily stay in Germany isnt emigration. (You should click the hyperlink to that word in the ATO departing resident calculator) To be a non-resident you would need to emigrate AND have intention to depart Australia for the forseeable future. One of the key requirements for ceasing AU residency is to have a right to permanently reside somewhere other than AU.

 

thats right paul.

im sure many australians living and working in thailand might find it difficult to argue such unless they have an elite visa which is one of the few options for long term stay there.

 

Cheers for the reply. So the time overseas doesn't matter? If put in less than two years into that calculator, I get Australian resident. If I put in more than two years, i get non resident. I also read in this article quoting a law that you needed to be in Australia for more than half of the income year to maintain tax residency status:
http://www.13wentworthselbornechamb...-Residents-Beneficiaries-of-Family-Trusts.pdf

Ah cheers for that. I guess the critical part would be the whether or not I have the right to permanently reside, which would only happen if I got a different Visa after the 1 year working holiday expired. This is highly likely to happen, but I guess Ill pass that bridge when I come to it...

 

Thailand, Indonesia etc.

Bingo, yes sometimes residency changes after you make a choice in 1, 2 etc years.

 

Time is a relevant factor, but one of many and everyone's situations differ.

 

Thank you @Paul@PFI and @Terry_w I appreciate your replies

 

I was non-resident immediately (self declared), went to work in UK with residency there, but yeah depends on what you´re doing overseas.