If you are an Australian citizen or permanent resident working overseas, your Australian superannuation continues to accumulate (or sit idle) in Australia while you’re away. Here’s what you need to know.
Do Employers Have to Pay Super When You Work Overseas?
The Super Guarantee obligation is primarily based on Australian employment law. The key questions are:
Is the employer an Australian employer (resident company)?
- Yes, and the employee is sent overseas temporarily: SG may still apply — the ATO applies “treaty” and “extended” provisions
- No — a local foreign employer: Australian SG generally does not apply
Is the employee an Australian resident for tax purposes?
- If you remain an Australian tax resident while working overseas temporarily, and your employer is an Australian company, SG may continue
The rules are complex and fact-specific. Many Australian expats working for foreign companies overseas will not receive SG — their super simply sits in Australia and grows (or not) without new contributions.
Voluntary Contributions While Overseas
Australian citizens and permanent residents can make personal voluntary contributions to their Australian super fund from overseas, as long as they:
- Have an active super fund account
- Transfer funds from an overseas bank account (via SWIFT/international transfer)
You can make non-concessional contributions. If you are still an Australian resident for tax purposes, you may also claim a deduction (concessional contribution) — though you’d need to lodge an Australian tax return.
Remaining an Australian Tax Resident
Whether you remain an Australian tax resident while overseas is a critical determination. The ATO applies a residency test based on:
- Domicile (permanent home)
- Intent to return to Australia
- Duration and nature of overseas stay
- Maintenance of Australian ties (family, property, bank accounts)
If you remain a tax resident:
- Australian tax applies to your worldwide income
- You can make concessional contributions and claim deductions
- Normal super rules apply
If you become a non-resident for tax purposes:
- Australian tax only applies to Australian-sourced income
- Personal deductible contributions may not be claimable in an Australian tax return (no taxable income in Australia)
- Non-concessional contributions can still be made
Investment Options and Fund Management
You can continue to manage your Australian super from overseas:
- Change investment options via the fund’s online portal
- Update contact details and beneficiary nominations
- Make personal contributions via international bank transfers
Note: Some super funds require an Australian address for correspondence. Keep your details updated or nominate a contact person in Australia.
Superannuation and Double Tax Treaties
Australia has tax treaties with many countries. These treaties generally protect against double taxation on super earnings — your super’s investment earnings in Australia are taxed at 15% in Australia, and you generally cannot be taxed on the same earnings in your country of residence (subject to treaty terms).
Treaty provisions vary. Countries with Australian super provisions in their treaties include the US, UK, Japan, Canada, France, Germany, and others.
Returning to Australia
When you return to Australia:
- Normal super rules resume immediately
- Employer SG resumes when you are employed by an Australian employer
- Any voluntary contributions you made overseas will have been received normally
For more: Super Contribution Limits, Super for Temporary Residents, UK Pension Transfer to Australia. For advice on your situation, speak with a licensed financial adviser via MoneySmart.