IntegraTec Q & A

Question: My client is intending to permanently depart Australia, can they accesstheir superannuation benefits?

Answer:Assuming your client cannot meet another condition of release, such as retirement or attaining age 65, they may be able to access the benefit as a ‘departing Australia superannuation payment’.

However, this condition of release is only available to temporary residents of Australia, holding certain types of visa. Therefore, clients who are permanent residents of Australia or who are not holders of an eligible visa, are not entitled to access their benefits upon permanent departure from Australia. New Zealand citizens are also unable to access Australian superannuation benefits in this way, because they have the option of retiring in Australia and applying for the age pension.

Assuming your client is a temporary resident with an eligible visa, the client will be required to provide evidence to the trustee of the superannuation fund to obtain access to the funds.

If the benefit in the fund is $5,000 or more, your client will need a written statement from the Department of Immigration and Multicultural and Indigenous Affairs (DIMIA), stating they held an eligible visa that has expired or been cancelled and that they have permanently departed Australia. To obtain this the client needs to complete a ‘confirmation of immigration status’ form, which is available from the DIMIA and ATO web sites.

If the client has less than $5,000, they will be required to provide a copy of the eligible visa, showing that it has expired or been cancelled and a copy of their passport showing they have departed Australia. Alternatively, they can use the method outlined above with a statement from DIMIA.

Where the client accesses benefits under these circumstances, the payment is referred to as a ‘departing Australia superannuation payment’. The payment is not counted towards the client’s RBL, is not an ETP and is taxed as follows:

Tax rate

Component applicable

Undeducted contributions;

post June ’94 invalidity Tax free

Post June ’83 (untaxed) 40 per cent

Remainder of payment including: 30 per cent pre July ’83, post June ’83 (taxed) of the total concessional, CGT exempt amount

Jason Menzies is senior technicalmanager,IntegraTec .