Act On Wealth Team | January 27, 2025

Understanding Superannuation Rights for Temporary Residents in Australia

Temporary residents in Australia are entitled to superannuation contributions from their employers, just like citizens. Understanding your rights and how superannuation works is vital for optimising this benefit. Contributions are preserved until you leave Australia permanently, at which point you can access your funds through the Departing Australia Superannuation Payment (DASP) scheme. Acton Wealth can help you manage your superannuation effectively, ensuring compliance and assisting with DASP applications. Contact us today to maximise your financial benefits while in Australia.

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Temporary residents in Australia are entitled to superannuation contributions from their employers, just like citizens. Understanding your rights and how superannuation works is vital for optimising this benefit. Contributions are preserved until you leave Australia permanently, at which point you can access your funds through the Departing Australia Superannuation Payment (DASP) scheme. Acton Wealth can help you manage your superannuation effectively, ensuring compliance and assisting with DASP applications. Contact us today to maximise your financial benefits while in Australia.

"Temporary residents in Australia are entitled to superannuation contributions from their employers, just like permanent residents and citizens. Understanding your superannuation rights, how it works, and how to access your funds when you leave Australia is essential for maximizing this benefit."

Act On Wealth Team

Team ActOn Wealth

Maximise Your Superannuation Rights as a Temporary Resident

Understanding Superannuation for Temporary Residents in Australia

If you are a temporary resident in Australia, its important to know that you are entitled to superannuation contributions from your employer. Just like permanent residents and citizens, temporary residents can benefit from this essential retirement savings system. Understanding your superannuation rights, how it works, and how to access your funds when you leave Australia can help you make the most of this benefit.

What is Superannuation?

Superannuation, or super for short, is a mandatory retirement savings system in Australia. It means that employers must contribute a percentage of your ordinary time earnings to a super fund on your behalf. For temporary residents, these contributions are preserved until you leave Australia, ensuring that you have savings for your future.

Key Facts About Superannuation for Temporary Residents

Employer Contributions: If you earn $450 or more in a calendar month, your employer is required to contribute 11% (2024/25) to your super fund. This applies to various eligible visa holders, such as those on a working holiday visa (subclass 417 and 462), temporary skill shortage visa (subclass 482), and student visa (subclass 500).
Preservation of Funds: Superannuation contributions cannot be accessed until you meet certain conditions. For temporary residents, this typically means leaving Australia permanently.

Departing Australia and Accessing Superannuation

When you leave Australia permanently, you can apply to withdraw your superannuation through the Departing Australia Superannuation Payment (DASP) scheme. Here’s how it works:

Eligibility for DASP: To be eligible, you must have left Australia, and your visa must have expired or been cancelled. Importantly, you must not be an Australian or New Zealand citizen, nor a permanent resident.
How to Apply for DASP:
1. Ensure your visa is expired or cancelled.
2. Check your super fund details via myGov.
3. Submit a DASP application through the Australian Taxation Office (ATO) or directly with your super fund.
Tax on DASP: Be aware that tax rates apply to DASP withdrawals, particularly for taxable components for working holiday makers. Keeping your super fund updated with your overseas contact details can help ensure smooth processing.

Managing Your Super While in Australia

While you’re in Australia, it’s crucial to manage your superannuation effectively:

Choose a Super Fund: Select a fund that offers low fees and strong investment performance. This can help you maximise your savings over time.
Consolidate Accounts: If you have multiple super accounts, consolidating them can save you on fees and make management easier.
Track Contributions: Use myGov to monitor your superannuation balance and employer contributions. Staying on top of your super can help you plan better for your future.
Keep Records Updated: Notify your super fund of any changes to your contact details or visa status. This is important to avoid any lost super or unclaimed funds.

Key Considerations for Temporary Residents

Lost Super: If you become uncontactable, unclaimed superannuation may be transferred to the ATO. You can retrieve it through the ATOs online services.
Investment Choices: Review your super fund’s investment options to ensure they align with your risk tolerance and financial goals.
Tax Implications: Be aware of tax obligations when withdrawing your super under DASP.
New Zealand Residents: If you’re moving to New Zealand, consider transferring your superannuation to a KiwiSaver account under the Trans-Tasman portability scheme.

How Acton Wealth Can Help

At Acton Wealth, we specialise in assisting temporary residents with superannuation management. Our services include:

Employer Contribution Checks: Ensuring your employer meets their contribution obligations.
Fund Selection: Helping you choose and consolidate super funds for maximum returns.
DASP Applications: Guiding you through the process of accessing your super when you leave Australia.
Financial Planning: Developing strategies to maximise your superannuation while you work in Australia.

Contact Acton Wealth today!

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Contact ActOn Wealth Today!

Contact Acton Wealth today to ensure your superannuation is well-managed and supports your financial goals during and after your time in Australia.

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Questions

Can i access my superannuation while still working?

In certain circumstances, such as through a transition to retirement strategy, you might access your super while still working. Connect with our team for a detailed understanding.

What are some common retirement planning strategies?

In Australia, common retirement planning strategies include maximising superannuation contributions, considering self-managed superannuation funds (SMSFs), understanding government benefits, diversifying investments, exploring transition to retirement (TTR) strategies, downsizing, seeking financial advice, implementing estate planning, conducting regular reviews, and prioritising health and wellbeing. These strategies aim to secure a comfortable retirement by optimising savings, managing risks, and making informed financial decisions. Consulting with a qualified local financial advisor is crucial for personalised retirement planning.

How can i be a tax efficient in Australia?

You can become more tax efficient in various ways, including salary sacrificing, claiming all relevant deductions, maintaining detailed and accurate financial records, contributing to your superannuation fund, making charitable donations, prepaying expenses, obtaining private health insurance and more. Speak to our experts for the best tailored advice for your situation.

What Others Say

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Since late 2020 I've utilised AoW because I needed help with my financial situation, my superannuation became available to me so I had to come up with a retirement plan. I did research a number of financial planning institutions, I decided to use AoW because of their reputation, they are so relaxed and friendly, they explained everything in terms I could understand. AoW have taken away all the stress and hard work, they have saved me literally thousands of dollars per year simply by advising me on how to move my superannuation dollars around to gain the maximum return possible They really know what they are doing and I know that I will now be comfortable in my retirement. Had I not used AoW and did my own financial plan, I would have lost tens of thousands of dollars because you don't know what you don't know. AoW have proven to me that they really know their business.

AOW Review

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I was given a lot off choices and advice on the pros/cons off how to invest with the best possible outcome for my situation and with the choice off being in charge off my own investing, but with there help. Matt understands as do I that there are NO guarantees on such a vulnerable market as it stands today. Very happy with the advice and outcome. I was very hesitant at first because I live in QLD and ActOn Wealth are in Melbourne Victoria, but being able to FaceTime and talk one on one makes life so much easier and they are always available on the day in most cases but like a lot off businesses, only time will tell how good they are. But at this stage and after going to there office I’m feeling very comfortable and would highly recommend.

Super Investment Advice

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My husband and I moved to ActOn Wealth nine months ago. It was in the middle of the Melbourne lockdown and the COVID meltdown had already washed over our superannuation. Blyth Staley took over our portfolio and the thing that impressed us was his market and product knowledge. He gave us data and researched-based advice. We interrogated that advice and its suitability for us. We have been nothing less than impressed with the growth in our superannuation. He arranged access to two platforms that, with the apps installed on our phones, gave us real-time valuations and updates on our assets. We just met for a review meeting and we're still here at ActOn Wealth. Our funds have experienced double digit growth since joining ActOn Wealth; what's not to like?