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I'm an Australian who's residing overseas and I'm a non-resident for tax purposes who's sole source of income in Australian is interest on a savings account. I want to contribute to my super account while overseas and I'm not sure how to do it. What forms should I fill for the ATO, what records should I keep? And how to calculate the tax on the contributions?

I appreciate any help regarding these topics and have a good one!

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If you don't want to claim a tax deduction for your contributions to your super fund then all you need to do if find out from your fund the account details or BPay details for you to make a contribution. As this would be going into your super fund as after tax dollars they are not taxed within your super fund at all.

If on the other hand you wanted to claim a tax deduction for the contributions you would need to contact your super fund after the end of financial year and tell them how much of your contributions for the year you want to claim a tax deduction for (they would have a standard form on their website to do this). Then once you receive confirmation from the super fund that they received your notification to claim a deduction on your contributions, you can then do your Tax Return and claim the deduction for your super contribution in your Tax Return. The amount you claim a deduction for in Your Tax Return will then be taxed at 15% in your super fund.

However, if you do not need to file a tax return in Australia, or you have earned below the $18,200 tax free threshold, or you are getting any tax paid during the year fully back, then there is no need to claim a deduction for your super contributions as you would not be needing to use it and you will just end up paying the 15% tax in your super fund.

  • I will be submitting a tax return next July for the interest generated on my savings in Australia so it seems that I will be contributing to my fund without claiming any deductions. I read about claiming deductions on personal contributions to super funds but I never understood how and what is the best scenario to do it.... BTW, my Australian income is < AUD$1000 and I'm non-resident for tax purposes. – MoneyQuiz2018 Oct 28 '18 at 11:49
  • As a foreign resident for tax purposes you will pay 32.5% tax on every dollar earned up to $90K. If the only income you will have is Australian interest then the deductions you can include against that income is any fees charged by the bank/s, any fees you paid to do you 2018 Tax Return, and any donations you may have made. If these deductions do not reduce your income (interest) to zero, you can claim the balance as a deduction from your contributions from your super fund. – Victor Oct 28 '18 at 21:50
  • So if your income after all other deductions is say $500 and you made say $2000 in super contributions, you would tell your super fund you are claiming a deduction for $500 of your contributions only. This way you will pay no tax outside of super and only 15% x $500 = $75 tax inside your super fund (on your contributions). – Victor Oct 28 '18 at 21:53

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