I’m an Australian resident, are there any Australian tax consequences when I cash in my South African retirement annuity or pension fund and repatriate the funds to Australia?
It depends on how long you have been a resident of Australia. There are only tax consequences if you’ve been a resident for more than 6 months. We can provide advice based on your specific circumstances.
How do I find out the withdrawal value of my South African retirement annuity fund?
If you would like more information about your South African retirement annuities and pension funds, please click here.
How do I find out what life insurance policies I have in South Africa?
If you would like more information about your South African life insurance policies, please click here.
How does the Australian superannuation system compare to the South African retirement savings system?
See Australia vs South Africa for a detailed comparison.
What is the dividend imputation system?
Dividend imputation is the system Australia uses to tax dividends and is designed to avoid double taxation. Shareholders received a tax credit (franking credit) with their dividend for the tax paid by the company on the profits which were used to pay the dividend. Corporate tax is levied at 30% and individual tax is based on a sliding scale from 0 to 46.5% (including medicare levy). This effectively means that entities with a 30% tax rate will pay no tax on a fully franked dividend, entities with a tax rate less of than 30% (like a superannuation fund) will get a net tax refund and entities with a tax rate greater than 30% will have to pay tax on the dividend.
What is a DIY Super Fund?
A DIY Super Fund is another name for a Self Managed Super Fund
What is a Wrap Fund?
In the context of superannuation a wrap fund is a retail fund with greater investment choice. Its main benefit is the ability to invest directly in ASX listed shares as opposed to having to buy a managed unit trust scheme.
What are they key features of the Australian Superannuation System?
Superannuation is the term used to describe Australia’s retirement saving system and its key features include:
- Employers are legally obligated to contribute 9% of an employee’s wage to superannuation based on super guarantee legislation.
- Funds are preserved (cannot be withdrawn) until retirement at age 55 or 60 depending on your date of birth. From age 65 all funds are accessible even if you are still working.
- There is no obligation to withdraw the funds on retirement or reaching age 65. There is also no requirement to commute the fund into an annuity and the whole fund can be withdrawn as a lump sum if you so choose.
- All withdrawals are tax free after age 60 and concessionally taxed between the ages of 55 and 59.
- Concessional (tax deductible) contribution limits are $25,000 p.a.
- Non-concessional contribution limits are $150,000 per year or $450,000 p.a. bringing forward the following 2 years contribution limits.
- Fund earnings are taxed between 0 and 15%
- The dividend imputation system can result in substantial tax refunds within a superannuation fund.
- Life insurance can be held inside a superannuation fund and the fund can claim a deduction for the premiums.
Can a non resident open up a superannuation fund in Australia and enjoy the same tax concessions?
No, you have to be a resident of Australia.
Which insurance companies do you deal with?
We deal with most of the top Australian insurance companies including:
- OnePath (ING)
- Macquarie Life