Superannuation information for temporary residents departing Australia

Tax on your super payment

Withholding tax, generally at a rate of 35%, will be taken out of your super before it is paid to you.

How will my payment be taxed?

All super lump sum payments are made up of two components:

• a tax-free component
• a taxable component, which may include
• an element taxed in the fund
• an element untaxed in the fund.

The withholding tax rates for these payments are:

• 0% for the tax-free component
• 35% for a taxed element of a taxable component
• 45% for an untaxed element of a taxable component.

The above rates apply to all super payments made to former temporary residents (except for holders of 405 and 410 subclass visas), irrespective of their age or whether they have retired from the workforce.

Do I need to include this payment in my Australian tax return?

No, the payment will not form part of your assessable income for Australian tax purposes and you will not need to include this payment in your tax return.

Sections within Common questions

• Eligibility
• The application process
• Tax on your super payment