Foreign super transfers
Lump sums may be transferred from a foreign superannuation fund to an Australian superannuation fund subject to contribution eligibility rules.
The transfer may result in a tax liability in relation to applicable fund earnings payable by the individual or, if a written election is made, by the fund. The election:
- can be made if the entire interest in foreign fund is transferred to Australian super fund, and
- cannot be revoked or varied once made
Transfers will generally be taxed as follows:
|
Transfer occurs |
Contribution type |
Tax treatment |
|
|
Within 6 months of Australian tax residency |
Entire transfer amount |
NCC |
Tax free |
|
After 6 months of Australian tax residency – tax election made |
Applicable fund earnings |
Does not count towards CC or NCC caps |
Taxed at 15% in super fund |
|
Balance of transfer |
NCC |
Tax free |
|
|
After 6 months of Australian tax residency – no tax election made |
Applicable fund earnings |
NCC |
Taxed at individual’s marginal tax rate |
|
Balance of transfer |
NCC |
Tax free |
|
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