# Super contributions and money transfer to Oz as a non-resident for tax purposes



## OzOzOverseas (Apr 28, 2019)

G'day!

I'm an australian residing overseas and I declared myself as a non-resident for tax purposes last year. Now, I want to transfer money to Australia while overseas and I want to contribute to my super too. Would this land me into any trouble with the tax office? 

Do tax contributions and wire transfers from overseas require a tax return? Can I transfer the money to my australian account first then make the contributions to my super instead of doing it directly from overseas?

Cheers!

P.S. I realise that responses from the forum members arent't and shouldn't be considered a legal/professional advice and I'm thankful for any help


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## Moulard (Feb 3, 2017)

So long as its not a self managed super fund, I think you will be fine. Trustees of a SMSF must reside in Australia (and if I recall correctly, all members of a SMSF must be a trustee). I think there are time limits involved but if you have a SMSF you may have to wind down your fund and rollover to a complying fund. 

Of course any money transferred into an interest bearing account may result in you having to file tax returns with the ATO. But if you are just using a domestic account as a transfer account into your super then interest may not be a factor depending on amounts and timeframes.

Not sure when you left Oz, but bear in mind there are now lower contribution limits.. 

That is the only only gotcha related to the transfer of funds that I can think of. The only other things you may need to think about are the differential capital gains treatment of any property you still have in Oz and other gotchas related to assets and income in Australia for non-residents.

These links are a good start.

https://www.ato.gov.au/Individuals/...work-out-your-tax-residency/#Foreignresidents

https://www.ato.gov.au/Individuals/...uals/Going-overseas/When-you-leave-Australia/

https://www.ato.gov.au/Super/Self-managed-super-funds/Contributions-and-rollovers/Contribution-caps/


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## OzOzOverseas (Apr 28, 2019)

Thank you for your reply. 

It's been a couple of yrs overseas and I want to transfer money to my Australian savings account. Part of the money will remain in the account and the second part will be super contributions.

I trust the Australian banking system more than the overseas one and I'm saving for a house when I move back to oz.

A while ago,I was back in oz for a visit and I did a cash deposit of 2k at a branch which made me make this post since I'm still learning more about taxation. I don't know what are the tax implications for doing the deposit.... I want to type 'LOL' but it's more of a confused laugh.... *confused laugh*


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## Moulard (Feb 3, 2017)

If the bank knows you are a foreign resident they should be witholding tax at the relevant non-resident rate - most likely 32.5% - assuming interest is less than 90k AUD. 

https://www.ato.gov.au/Individuals/...pes-of-letters/Interest-income/Non-residents/

Not sure about tax free thresholds for foreign residents, sorry, but if there is one then you would need to file an Australian return to get a refund of the amounts withheld.

Again, so long as it is not a self managed super fund, then I don't believe that there are any issues regarding personal contributions so long as they are below the relevant contributions cap for your age.


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## OzOzOverseas (Apr 28, 2019)

Moulard said:


> If the bank knows you are a foreign resident they should be witholding tax at the relevant non-resident rate - most likely 32.5% - assuming interest is less than 90k AUD.


Thank you Moulard for your reply. BTW, the tax withholding for bank interest is 10%. for a non-resident.


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## Moulard (Feb 3, 2017)

Sorry, yes you are right.

32.5% is the tax rate for non-residents for things other than interest, unfranked dividends and royalties.


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