Superannuation and working abroad, what are your options.
In today’s world work is certainly not a local matter. What used to be going downtown to look for a job now is going down Asia, Africa, America or Europe to look for or continue working. This is the case whether you are a migrant worker, are moving to a region with more work prospects or you are a professional whose special skills are required overseas.
Whichever your personal circumstances are there is a factor you don’t want to forget if you are leaving Australia for a period of time to work abroad and that is Superannuation. As you know Superannuation is the Australian’s Government sponsored pension scheme that most Australian workers use whether it may be in the Super fund or attached pension funds.
As with all pension funds the idea behind superannuation is a constant flow of contributions throughout many years invested to provide compound interest. After a few decades this should provide you with a generous pension with which you can live and enjoy your retirement years. This fund can also be used if you become terminally ill or handicapped. In the worst case scenario, if you die, your beneficiaries will receive the money in your superannuation fund.
If you are leaving the country it is worth thinking about how your super fund is going to fare. There are a few options you can choose from.
If you know now which country you are going to work at you can check with the Australian Taxation Office to see if there is a bilateral agreement with that country to avoid doubling up on your Superannuation costs or either stopping them altogether.
This process is very simple if your employer is sending you abroad to work for a period of time. Before you leave they will need to file a certificate of coverage from the Taxation Office. Then the Taxation Office will guarantee there is an agreement or arrangement in place to continue your Superannuation payments.
If you are leaving the country on your own volition in search for work or in response to a job offer your Superannuation status will depend on the length and nature of your absence. If you are leaving for over a year or do not have a definite return date it is worth your time to find out if you will actually continue being an Australian resident for tax purposes.
In either case the best way forward is to contact the Australian Tax Office and find out how to deal best with your situation. You can always make arrangement s to continue paying for your Superannuation while you are away if you are interested in using your Superannuation fund as your main pension fund while you arrange the specifics of your employment and which pension fund of which country you will end up subscribing to.