Paying Super back home.

[assymetric]

Hi everyone,

Any aussies in the pit paying super back home?
If so would appreciate any info you could pass on, i.e. tax status, contributions, company names, etc

Assy

[pacificgypsy]

If you are non-resident for tax purposes, why would you want to put money into a superannuation account that will have its income taxed at 15%?

[halas]

There are so many options out there, and paying foreign earned, tax free dollars into a super-annuation account is not one of them.
Plenty of Oz folk around in the 'pit to ask about ideas.

halas

[Ginger Meggs]

"If you are non-resident for tax purposes, why would you want to put money into a superannuation account that will have its income taxed at 15%?"

I may be wrong, but my understanding is that only pre-tax salary sacrifice contributions made through an employer are taxed at 15%, and that other monies that are voluntarily contributed are not taxed.

Because these monies then earn interest tax-free, perhaps contributions to a super fund might not be such a bad idea, particularly for someone who wants to diversify their portfolio.

[pacificgypsy]

"I may be wrong, but my understanding is that only pre-tax salary sacrifice contributions made through an employer are taxed at 15%, and that other monies that are voluntarily contributed are not taxed.

Because these monies then earn interest tax-free, perhaps contributions to a super fund might not be such a bad idea, particularly for someone who wants to diversify their portfolio."

Ginger, your first para is a correct statement but your second para is not correct.

I was referring to interest, distributions and dividends earned within the superannuation account that are taxed at 15% in the super. accumulation stage.

Personal deposits into super. up to your annual contrib. limits ( varies according to age ) will not be taxed at the 15% rate.

For those thinking of a self funded super account....you need to be an Australian resident to establish one.

Super is a great tax vehicle for Australian residents on tax rates > 15% but for a non-resident you must keep in mind that you will pay up to 15% tax on interest, distributions and dividends that are in the superannuation (accumulation) account.