Traveling overseas is an exciting experience and an opportunity to see new places, meet new people, and try new things. However, it’s important to make sure you’ve taken care of all the necessary details before you leave, including your superannuation account.
If you are an Australian citizen or permanent resident, your super account will continue to operate as normal while you are abroad. However, your employer contributions may be affected by your move. If you transfer to an overseas location with the same company, your employer contributions may continue. But if you switch to an overseas employer, they will likely have no obligation to make contributions to your Australian super fund.
To ensure your super is well taken care of before you leave, here are a few things you can do:
Stay in contact with your super fund by updating your contact details once you have settled into your new home overseas. This will allow your fund to keep you informed of any important updates and changes to your super.
Consider consolidating any multiple super accounts you may have to minimize fees and insurance costs. Having multiple accounts can lead to higher fees and duplicated insurance coverage. Generally, the fewer accounts you have, the easier it will be to manage your super and understand how much money you’ll have in the future.
Keep your super account active by making sure it receives contributions or by adjusting your investment option. If your super account balance drops below $6,000 and your super fund doesn’t receive contributions for 16 months, your fund may have to transfer your “inactive low-balance” account to the ATO. To avoid this, you can make sure your account receives contributions or update your investment option.
Avoid having your super account flagged as “lost” by the ATO by staying in touch with your fund and maintaining a balance above $6,000. If your super account has no activity for five years and your fund is unable to contact you, the ATO may flag your super as lost.
Taking care of your super before you leave will ensure that your hard-earned savings are well protected while you are abroad. This will give you peace of mind and allow you to fully enjoy your travels without worrying about your financial future.
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