Temporary residents and superannuation
By Daniel Butler (dbutler@dbalawyers.com.au) and Tina Conitsiotis (tconitsiotis@dbalawyers.com.au), DBA Lawyers
Introduction
The attraction that Australian offers as a safe, prosperous and lovely country to live is evident. As a result, in today’s global environment, more and more people from overseas are travelling to Australia as non-residents. Many of these people visit Australia on temporary resident visas. These people are likely to generate some savings in the Australian superannuation system, whether prior to their visit here or during their stay in Australia.
For non-residents who do not intend on visiting Australia, having savings in the Australian superannuation system generally poses little problem (provided the fund is not a self managed superannuation fund due how the residency requirements apply to small funds). However, for former, current and future temporary residents, the Australian superannuation system is generally not attractive and can be tax inefficient. The above is a result of changes to the legislation that occurred in late 2008.
This article focuses on how these new rules can result in substantial tax to temporary residents and what advisers need to be aware of to overcome these issues. Read more of this post