Withdrawing from your Superannuation while Living Overseas

For many Australians living overseas, one important financial consideration when thinking about retirement is their Australian Superannuation. If retiring overseas is a possibility, either permanently or for just a few years, understanding your options around withdrawing from your Superannuation while living overseas is critical to making informed decisions and living your desired retirement.

In this blog, we look at whether Australian Expats can withdraw from their Superannuation while living overseas, the superannuation rules to navigate, and what challenges they might face when doing so.

What is Superannuation?

Superannuation is a long-term savings plan designed to provide Australians with income in retirement. It offers members a low tax environment to save for retirement, with a maximum tax rate of 15% on investment earnings within the super fund.

In Australia, employers are required to contribute a percentage of an employee’s earnings into a Super fund. This is known as the Super Guarantee (SG), with the minimum rate set at 12% of gross earnings from 1 July 2025. Individuals can also make voluntary contributions to further boost their retirement savings. Generally, access to these funds is restricted until the individual satisfies a condition of release.

Can Australian Expats Access their Australian Super?

The short answer is no. Being an Expat doesn’t automatically allow you to withdraw your superannuation, even if you have no intentions of returning to Australia. The same rules that apply to residents in Australia still apply to you when you move overseas:

Meeting a Condition of Release

Australian living overseas can only withdraw from their super if they satisfy one of the following conditions of release:

• They reach preservation age (60 years old), and retire.

• They turn 65, regardless of employment status.

• They are permanently incapacitated.

• They are diagnosed with a terminal medical condition.

• In limited cases, they are experiencing severe financial hardship or meet compassionate grounds criteria.

  
  

Temporary Residents vs Australian Citizens and PRs

There is a key distinction between temporary residents and Australian citizens or permanent residents living abroad.

If you were in Australia on a temporary visa (such as a 457 or 482) and have permanently left the country, you may be able to claim your super under the Departing Australia Superannuation Payment (DASP) scheme. However, Australian citizens and permanent residents do not qualify for DASP. This means withdrawing from superannuation while living overseas is subject to the same rules as if you were still living in Australia.

Tax Implications for Australian Expats Withdrawing from their Super

Even if you meet a condition of release and are eligible to access your Super, taxation becomes a more complex issue when you’re living overseas.

In Australia:

• Withdrawals are generally tax-free if made after age 60 from a taxed super fund.

• Withdrawals before age 60 may attract tax, depending on the components of your super.

In your Country of Residence:

• Some countries may tax super withdrawals as foreign income.

• Others may not recognise the tax concessions Australia provides.

• There may be double taxation risks, unless covered by a tax treaty.

If you’re considering withdrawing from superannuation while living overseas, it's crucial to seek advice from a professional adviser familiar with both Australian and international tax laws.

Should you withdraw from Super as a lump sum or regular income payments?

Withdrawing from your superannuation while living overseas can be done either as a lump sum or as a regular income stream, but each option carries distinct financial and tax implications.

Lump sum: Choosing a lump sum may provide immediate access to a significant amount of money, which could be useful for large expenses or unique investment opportunities; however, it may also result in higher tax obligations, particularly if you're residing in a country that does not have a tax treaty with Australia.

Income stream: Opting for regular income payments, such as through an account-based pension, can offer more predictable, long-term financial stability and may attract more favourable tax treatment in both Australia and your country of residence. It's important to consider factors like your age, the longevity of your super fund in retirement, and the tax laws in your host country to determine the most suitable option.

Keep in mind there are limits on how much you can contribute to superannuation each financial year, so the same amount of money withdrawn may not be able to go back in. See our blog post here, which discuss the contribution limits for various contribution types in Australia.

What should Australian Expats do with their Super?

If you're an Australian Expat and not yet eligible to access your super, consider the following:

• Don’t ignore your super: Your Super is a great way to accumulate wealth for retirement as an Australian expat, so be sure to review your chosen fund and check the investments are aligned appropriately for your investment time horizon.

• Review your fund: Consider the fees, performance, and insurance options within your super fund.

• Consolidate funds: If you have multiple accounts, consolidating can help reduce fees.

• Nominate a beneficiary: Ensure your super has up-to-date beneficiary nominations, especially if your family situation changes.

Planning Ahead as an Australian Expat

Withdrawing from your superannuation while living overseas is not straightforward, but planning ahead can make all the difference. If retirement is on the horizon, consider how super fits into your broader international financial strategy. Questions to consider include:

• When will you meet a condition of release?

• What tax will apply on withdrawal in Australia and abroad?

• Do you plan to return to Australia, or retire overseas?

Conclusion

Withdrawing from your superannuation while living overseas as an Australian Expat isn’t something you can do just because you’ve moved abroad. The rules are designed to preserve your savings for retirement, no matter where in the world you are.

That said, there are legitimate pathways to access your super when the time is right. The key is understanding the rules, planning your finances accordingly, and getting expert advice. If you're living abroad and unsure of your options, speak to a licensed financial adviser to ensure your Super aligns with your long-term financial goals.

Runway Wealth Management is the trusted Financial Adviser to the Australian Expat community. Our tailored advice is backed by expertise, education and experience, which allows us to be at the forefront of Australian Expat Financial Planning.

If you would like to speak to one of our Expat Financial Advisers about this blog or if you have other queries, we would be more than happy to speak with you. Feel free to send us an enquiry through the ‘Contact Us’ tab provided in the below link:

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General Advice Disclaimer: The information contained herein is of a general nature only and does not constitute personal advice. You should not act on any recommendation without considering your personal needs, circumstances, and objectives. We recommend you obtain professional financial advice specific to your circumstances.