Paying Super back home.
 

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

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%?

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

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%?"

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.

"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.