Superannuation claims when leaving Australia

Should you claim Superannuation when returning to Ireland?

Much is said about Superannuation (or ‘super’) but there are some details you need to know when returning to Ireland after working in Australia. First up, you’ll know that Superannuation is a retirement savings system. Anyone over 18 who earned more than $450 per month in Australia qualifies and your employer is obliged to pay 12% of the value of your ordinary time earnings into a super fund on your behalf.

We are often asked questions about that to do when you leave Australia and if you should actually claim it or leave it where it is in the hope it might accrue and grow. Is it better to leave it there or claim it back?

Our tax expert partners, Taxback.com, supplied these answers:

1. A permanent visa holder (PR visa holder) is eligible to claim Superannuation under DASP (Departing Australia Superannuation Payment) only if, before obtaining a PR visa, they have been a holder of temporary resident visa. If you only held PR visa, you are not eligible for Super claim under DASP even if your PR visa has expired.

2. If you leave your Super in a Superannuation fund till retirement, most probably it will be reduced due to the fund’s admin fees through the years. So, if you’ve left Australia and have no intention of returning (and no valid visa to do so) it’s better to claim your Super through DASP and get most of the contributions as refund. The refundable amount will depend on the type of visa you have held before the PR – if it was a Working Holiday Visa, only 35% of the contributions are legally refundable, if it was a Skilled/Sponsorship/Student Visa – then 65% of the accumulated amount can be claimed back.

3. When a person works for an Australian company, generally their employer must pay contributions into a super account in their name, starting from the first month of their employment. All Australian Superannuation funds have administrative fees that reduce the balance on a monthly basis. If you have left Australia and no new contributions have hit the account in the last 6-12 months, the Super fund transfers the contributions to the Australian Tax office under USM (unclaimed superannuation money) scheme. This applies if the account balance is under $6000. Members can still apply for a refund if the money is held by ATO.

NexVentur’s partner Taxback offers this final piece of advice: “If there is no intention of going back to Australia and no plans to permanently live and settle down in Australia – it’s best to claim the super now (if visa expired and you’ve held a temp Visa prior to the permanent one). Admin fees will reduce the account balance on a monthly basis as long as the account is active.”

How to apply for your Superannuation refund

Find out more and apply for your superannuation refund here.

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