Video

Yes, this is also assuming that these funds are invested on a regular basis assuming long-term stock market returns.

@@AustralianExpatFinance ok got it. thanks. so to retire on 75k in 20 years i need to save 38k a year

@@kuntrasha Of course, important to seek personal advice.

Thank you for the question. Many will utilise the bring forward non-concessional contribution limit (up to $360,000 currently) to 'shift' superannuation to a younger spouse, as super in accumulation phase is typically 'sheltered' from the assets test. Given the limits and other factors to consider here, I would certainly recommend that you speak with your Financial Adviser.

There are some tremendous opportunities both personally and professionally when you have the world to consider.

Thank you for your message. It sounds like you should be speaking with your past employer, and if they can't be of any assistance, then directly with the Australian Tax Office to explore your options here. Employers in most instances have an obligation to pay super.

Even 3 - 4% would be a reasonable outcome compared to what many others have realised. Then there are those hoping for En Bloc sales, which can then trigger Sellers Stamp Duty, and potentially CGT in Australia if you're no longer an SG tax resident. Certainly not a path to proceed down without proper advice.

Thank you for your question here. It is likely the deemed disposal rules will apply and then any future tax would be based on your tax residency at the point of sale. I'd suggest your starting point would be an experienced expat accountant / tax attorney in Australia.

Thank you for the kind words and your question. You are correct with regard to the tax savings in pension mode relative to accumulation phase, so in most cases, this would be the sensible option. However, I would suggest reaching out to your Tax / Financial Adviser to explore if there are avenues to increase your pension entitlement or optimise your retirement income further.

Thank you for the tip - I'd be happy to do so. Are there any other aspects or concerns you have about moving back to Australia?

Here is one on the tax aspects of repatriating, but would love to hear your concerns and queries beyond just tax planning - czcams.com/video/ZMv97c8meqA/video.html

@@AustralianExpatFinance Not really. That's about it in a nutshell. I feel like moving back there with nothing and trying to start a new life is tricky at the moment.

@@AustralianExpatFinance Thank you for the link. I will have a look

@@kuntrasha Absolutely! Stay tuned - I'll prepare something as a resource covering these key areas. Thanks for taking the time to check out my videos.

Thanks for sharing - although in my experience I've found there are many reasons driving people to retire elsewhere. Climate, travel opportunities, family, new experiences. Australia has certainly one of the more costly retirement destinations.

Great question Richard. This is where deemed disposals come into the picture. A deemed disposal can be elected whereby you would declare the capital gain in your final tax return when leaving the country and pay tax as if the shares are sold. Once a non-resident of Australia for tax purposes, then the shares would continue to grow outside of the Australian tax net (tax free if in Singapore for example). If you didn't elect to carry out a deemed disposal, then they would still be liable for Australian tax. Certainly an important area to seek professional advice in.

@@AustralianExpatFinance Unfortunately I did not elect to carry out deemed disposal prior to becoming a nonresident. Can I still apply the 50% CGT discount on the capital growth from date of purchase until 8th May 2012?

​@@richardpereira1248 In some cases you can seek to revise a previous tax return to complete the deemed disposal, if in your interests to do so. I would recommend reaching out to your accountant to calculate which scenario is best - a) revision with the deemed disposal or b) selling with access to any applicable discounts based on your historical tax residency.

Hi. My question may be in the other way round. An Australia expat working overseas and plan back to down under retire. Could we setup an SMSF to accommodate my overseas rental property & non-Australia share (e.g. US share), so as to enjoy the 15% income tax and zero property gain tax ? Thank you 😊

@@chowterence4467 If you're asking can you set up an SMSF whilst an Australian expat - in most cases no - as this would fail the tests and could face harsh penalty taxes. With regard to the shares, it may be better looking at alternative ownership structures depending on your own current tax residence.

Thanks for your question Jimmy. Gold bullion is generally not considered taxable Australian property, and as such would be treated in a similar manner to shares, ETFs, etc. If bought whilst an Australian resident, then you'd need to consider whether to complete a deemed disposal when leaving the country.

@@AustralianExpatFinance thankyou thankyou thankyou.. And yes ..I'm definitely going to do deemed disposal when I leave .... Because gold in last 5 years has gone up 75% ..my silver went up 102% in five years.....but as you know ..15-20% is actually the real rate of inflation....

Thank you for your question. Typically, it would be taxable from your point of becoming an Australian tax resident, but I would suggest reaching out directly to your tax adviser / accountant for some formal advice here.

Spot on - providing it was below $500,000 on the last 30 June.

Hi John, Thank you for your note here. I would suggest reaching out directly to your accountant to discuss the tax implications and any relevant strategies for you here.

Great question - with a great deal of planning, putting in place Directors / Co Sec, ensuring compliance requirements are met and you're aware of the tax implications of doing so.

@@AustralianExpatFinance Sorry but I am unclear as to your answer. Let me rephrase the question. The Australian expat who is a "Singapore-tax-resident", sets up tax advantaged Trust or Company while working in Singapore - I understand the tax advantages here. When the expat returns to Australia, permanently, is it still a tax advantage [the Australian is now an Australian tax payer] to leave the investments [say ETFs] in the Singapore entity and not terminate the company/trust. My understanding is that the Directors / Co Sec has to be Singaporean citizen [or another Australian expat who is a "Singapore-tax-resident"].

@@onnshaw8218 This MAY be advantageous tax-wise but it would depend on the management and control of the entity, how investment returns are treated for tax purposes, and how funds will eventually be repatriated if relevant. There would then obviously be the running costs of the company, and Powers of Attorney may be required given the company would be overseas. Certainly one to be reaching out to a qualified accountant licensed in both Australia and Singapore to explore the personal situation here.

@@AustralianExpatFinance MANY THANKS.

@@onnshaw8218 Thank you for taking the time to check out the video.

You can email me at jarrad.brown@gfcadvice.com

If you don’t believe the Govt can spend it better than you can, it’s a great incentive to legally minimise your tax as much as possible.

Great question. In many cases, yes they do but it’s important to review the contract, employment type and visa.

Not necessarily. Any changes in leadership could see amendments to this policy also, such as indexation being introduced, the $3 million figure being revised, or some other amendment.

My suggestion that it 'could' be a problem was more based on the fact that it's highly likely there will be many changes of leadership between now and this actually becoming an issue, and that indexation will be introduced. Right now, modelling with indexation would have meant less revenue and may very well have received less support.

Thanks for the note - appreciate you checking it out.

Excellent question. They actually highlighted that it wouldn’t be indexed at this stage.

Thank you very much for the feedback - I'm really pleased to hear that the videos are helpful. Best savings accounts in terms of interest rates at present are the Standard Chartered Bonus$aver and UOB One, but there's always more to consider than just the headline rate. DBS for example is one of the best in terms of FX transfers amongst the banks. In terms of savings, there's no 'one-size-fits-all' approach there. Savings in Australia would incur withholding tax, but it's only 10% of the interest earned, so it's important to consider what's best for you.

Thanks for your note Gaston

This is in Singapore Dollars, although given the currencies are relatively close to parity, I would suggest there's not a great deal of difference.

In many cases, the self-declaration responsibility would be on the individual in the event of a residency audit. Memberships alone are unlikely to be sufficient to confirm residency.

You're absolutely spot on. Sometimes you don't have to look too hard to work out what behaviour they're trying to motivate.

Thank you very much for the feedback - I appreciate that. Providing you have your contact details and Tax ID Number on file with your bank, there should not be any issues with this money being claimed because deposits are not made. Always good to regularly review though to ensure that you're getting the best rate you can secure.

Thank you for your question. Non-concessional contributions can be a great tool to repatriate funds to Australia given the larger limit, allowing you to contribute up to A$330,000 (soon to be A$360,000) at once using the Bring Forward rule. Typically, the tax rate of 15% in super is more attractive than personal tax rates.

@@AustralianExpatFinance Thanks Jarrad

@@duoelduo You're most welcome.

It certainly is! People often underestimate just how much can be contributed to superannuation over a relatively short space of time.

Thanks for the question Paul. Given there's a lot to the scenario here, I would firstly definitely recommend seeking personal advice from your Tax and Financial Adviser. In terms of the super limit, using the bring forward rule and the new expected non-concessional limit for the 2024/25 financial year, she could potentially add A$360,000 to her super fund, or A$120,000 just using the single year's limit.

There are various small business concessions to contribute more into superannuation from the sale of business assets, however it doesn't necessarily sound like this would apply here.

Thanks very much for the feedback. The annual contribution limit is A$110,000, which increases to A$120,000 on 1 July 2024. The overall superannuation cap is A$1.9 million beyond which you typically can't make further non-concessional contributions. Always good to seek personal advice and consider your options though.

@@AustralianExpatFinance Thanks for the very quick reply.

@@AustralianExpatFinance Could I also ask if the $1.9 million cap is also indexed in the same way as the contributions are indexed? Thanks kindly.

@@bpw8139 Very good question - it is designed to index at the inflation rate, and is expected to reach $2.3 million over the next ~5-10 years, depending on inflation rates. It is however subject to policy change, so it's important to watch this space closely to note any impactful changes.

@@bpw8139 You're most welcome - thanks for taking the time to check out my video.

Great question. We'll be reviewing the Budget closely for any changes here, but I'm not too optimistic.

Thank you for sharing. Not quite the focus of this video, but on this note, many Australians have followed this path searching for more enjoyable lifestyles in cheaper locations. Thailand, Philippines, Vietnam, Malaysia, and many parts of Europe are certainly among the popular choices.

Thanks for your note Malcolm. This certainly isn't the case, but can apply in some situations such as if they have an SMSF, if their super fund won't accept contributions from non-residents (rarely the case), or if it makes more financial sense to save for retirement elsewhere.

...thanks..?

Thank you very much for the feedback. The carry forward concessional contributions can typically only be utilised if your Total Super Balance (TSB) is below A$500,000 as at 30 June for the previous financial year. The balance being below this in previous financial years, would typically not allow you to make backdated concessional contributions in previous financial years.

​@AustralianExpatFinance If husband and wife are contributing to same SMSF, then in that scenario how does $500k balance limit works?

@@dreamrider7598 Great question. Even in an SMSF, each member has their 'own balance' which gets recorded. It's important to review any splitting, and contribution limits with an SMSF also. An SMSF also raises additional challenges for Australian expats in terms of making contributions.

​@AustralianExpatFinance Thanks mate. I recently came across your channel and finding it really useful. I am still working and in Australia but soon planning to move/retire (early retirement!) overseas. Need lots of planning to make it successful I guess 😅

​@@dreamrider7598 Thank you very much for the feedback - really appreciate it. That sounds like a very exciting move. Feel free to reach out if we can ever be of value.

Thank you very much for the feedback - appreciate you taking the time to check it out. In many cases, you can still make contributions, but it's important to note that this may require opening a new accumulation phase superannuation account. It's also important to consider the work test and it's impact on the tax deductibility of any super contributions for you. Given the variables to consider, and potential tax implications, this is certainly one to seek personal advice on from your Financial Adviser.

An excellent case study. In many cases, yes, however it is important to review your individual situation and ensure this is correct and also to explore the optimal timing of when to use your unused concessional super contributions. Feel free to reach out to me directly and book in a complimentary chat.

Great question. Funds that are contributed to your super fund by your employer, or via salary sacrifice, are taxed concessionally at 15% (once). However, it is worth noting that capital gains and dividends within the fund are also taxable at 15%. This reduces to 10% for capital gains for investments held within super beyond 12 months.

@@AustralianExpatFinance You didn't answer @crisbrown7484 question at all.

@crisbrown7484, "do i get taxed again at 15% when i put the already taxed money in my super?" The answer to your question is No.

​@@nphung01 It's important to note that capital gains tax and dividend tax still applies within the superannuation fund at a rate of 15%, which is discounted to 10% if held for more than 12 months. The only tax that doesn't apply on after-tax contributions is the concessional tax rate of 15% when the funds are contributed.

Thank you for taking the time to watch it - I'm glad to hear you got value out of it. As a non-resident of Australia for tax purposes, you can typically always still make superannuation contributions. This could be restricted if it's an SMSF, or there's a fund level restriction, however the latter would be quite rare. There could be other reasons your Adviser is suggesting you can't make contributions (or perhaps shouldn't), so please be sure to seek professional and personal advice here.

Great question. There is no clarity at this point on whether it will be 45 days or more, and please note a couple of very important points to note: - The 45 day is not the ultimate deal-breaker, and it's important to consider the overall position. - Where there's a tie-breaker residency factor to the Double Tax Agreement between Australia and your country of residence, the 45 days (or whatever number it ends up being) may not be applicable.

It certainly is. Thanks for your note.

Thanks for the feedback. It's a very difficult one to predict as it's really down to a race between the central banks as to who cuts first and more aggressively. Personally, I can't see a lot more downside in the AUD from here, and see that it may strengthen. Certainly taking advantage of current levels. Personal opinion only of course.

Fewer and fewer it seems - albeit it is all relative and dependent on how you define 'affordable'.

The biggest beneficiaries will be the working average Australian who doesn't have an SMSF or a Financial Adviser to provide them with advice on such matters.

Thank you Praveen

Yes, generally speaking you could retain your shares as a resident and not complete a deemed disposal, which would mean Australian tax would eventually apply in future. There is a lot to consider with such a move, so I would certainly suggest you speak with your Tax Adviser and run the scenarios.