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Foreign super

Normal contribution rules and caps apply

Section: 10.6

The normal non-concessional contributions caps will apply to the transfer of overseas pensions into Australian super funds as outlined in the table above. Additionally, if the member is age 65 or over, they will need to meet the work test to contribute or transfer an amount of foreign super.

Caution: 100% of foreign super transfers are fund-capped contributions

It is important to note that 100% of a foreign super transfer received by an Australian fund is a fund-capped contribution. Importantly, this includes any non-assessable
amount and any applicable fund earnings amount (including where the client has made an election for this amount to be taxed within the fund).

Where a foreign super transfer is received that exceeds the fund cap, the Australian fund must return the part of the transfer above the fund cap (eg back to the foreign
superannuation fund). The implications of this happening include that the client will no longer be able to make a valid election for their Australian fund to pay tax
on the applicable fund earnings (as they would still have an interest in their foreign superannuation fund after the transfer).

Last modified: Tuesday, May 2, 2017