14 Jan From Superannuation to SRS: The Top Questions Aussie Expats in Singapore Wish They Asked Before Moving
By Jarrad Brown
For Australian expats living in Singapore, managing finances can be one of the most confusing aspects of life abroad. From understanding your superannuation and the Supplementary Retirement Scheme (SRS) to navigating tax residency and healthcare, there’s a lot to consider. Unfortunately, many expats only start asking the right questions after they’ve already made the move, which can lead to some costly mistakes or missed opportunities.
Whether you’re an Aussie expat in Singapore or planning to move there, these are the top financial questions that many wish they’d asked before making the leap.
1. Do I Need to Pay Australian Taxes While Living in Singapore?
One of the first questions many expats ask is whether they’re still liable for Australian taxes while living in Singapore. The answer depends on your tax residency status.
Australia’s tax system is based on residency rather than citizenship. If you’re considered an Australian tax resident, you’ll need to report and pay taxes on your worldwide income, including any earnings in Singapore. However, if you’re considered a non-resident for tax purposes, only income earned in Australia will be taxed.
To determine your tax residency, you’ll need to look at your ties to Australia and how long you’ve been living abroad. Many expats in Singapore end up as non-residents for tax purposes, which means their overseas income won’t be taxed by the Australian government. It’s worth checking your tax residency status so you know where you stand.
2. What Happens to my Superannuation While I’m Living Abroad?
Superannuation is a major consideration for many Australians, even when living abroad. The good news is that your super will continue to grow, even if you’re not contributing to it while working in Singapore. As long as your super remains in an Australian fund, it stays invested and earns returns, though it’s subject to Australian taxation.
You don’t have to make regular contributions while overseas, but leaving your super in place allows it to accumulate over time. Some expats choose to consolidate their super into a single fund to reduce fees and simplify management. If you’re unsure about your options, it’s wise to consult with a financial advisor to see how your super fits with your long-term retirement plans.
3. Should I Keep Contributing to My Super While Living in Singapore?
Deciding whether to continue contributing to your superannuation is a personal choice that depends on factors like your income, your super fund’s rules, and your retirement objectives. Non-concessional (after-tax) contributions are typically allowed by most super funds for non-residents, subject to contribution limits. If you remain on an Australian employer’s payroll, Superannuation Guarantee contributions may continue, but this generally applies only if your employer is based in Australia and you are a tax resident.
Concessional (before-tax) contributions may also be an option, depending on your eligibility. Be sure to check whether your super fund accepts contributions from non-residents and consider cost-effective methods for transferring funds internationally.
Additionally, it is important to monitor contribution caps to avoid potential tax penalties. You may also want to explore other retirement savings options in Singapore, such as the Supplementary Retirement Scheme (SRS), which offers tax benefits that may suit your needs.
4. What Is the Supplementary Retirement Scheme (SRS) and Should I Be Using It?
The SRS is a voluntary retirement savings plan available to both locals and expats in Singapore. Many Aussie expats find it an attractive way to save for retirement due to the tax benefits it offers.
When you contribute to an SRS account, your contributions are deducted from your taxable income, reducing the amount of tax you pay in Singapore. Contributions are not subject to taxes at the time they are made. However, they are usually taxed at a lower rate upon withdrawal, provided the funds are taken out after retirement.
Although it’s not a replacement for superannuation, the SRS can be a useful complement to your existing retirement savings strategy. The scheme has annual contribution limits, so it’s worth looking into whether it’s something that could benefit your retirement goals in the long run.
5. How Should I Manage My Investments While Living in Singapore?
Managing investments while living in Singapore requires understanding both the Australian and Singaporean financial systems. Whether you keep your investments in Australia or decide to diversify into Singapore or global markets, it’s important to understand how they’re taxed in both countries.
Singapore is known for having a relatively favourable tax environment, with no capital gains tax on investments. On the other hand, Australia taxes capital gains, so selling Australian assets may result in a tax liability.
Expats often find that diversifying their investments across different markets can help reduce risk and provide opportunities for growth. Whether it’s in Australian stocks, Singaporean property, or international funds, understanding how your investments will be taxed and how they fit with your retirement plans is key.
6. What’s the Healthcare Situation for Aussie Expats in Singapore?
Singapore’s healthcare system is known for being high-quality, but it’s not as affordable for expats as it is for Singaporean citizens and permanent residents. As an expat, you won’t be eligible for subsidised healthcare, so private health insurance is essential.
Some employers offer healthcare coverage as part of their benefits package, but if you’re not covered through work, you’ll need to arrange your own health insurance. It’s important to ensure your coverage is sufficient for both routine medical care and any emergencies that might arise.
In addition to private health insurance, Singapore has a mandatory health savings account system called Medisave. However, this is primarily designed for Singaporean citizens and permanent residents, so as an expat, it’s unlikely to be relevant to you
7. How Does GST Impact My Expenses in Singapore?
Living in Singapore means you’ll encounter the Goods and Services Tax (GST), which is currently set at 9%. GST is applied to most goods and services, so it’s important to account for it when budgeting for daily expenses, especially when eating out or shopping for big-ticket items.
However, there are some exemptions. For instance, the sale and lease of residential properties, along with financial services, are exempt from GST. While it’s not a huge burden, understanding the GST system can help you plan for your spending, especially if you’re used to a different tax environment back home.
8. What Happens If I Decide to Return to Australia?
Many Aussie expats eventually return to Australia, and it’s important to consider the financial implications of this transition.
If you’ve been contributing to super while abroad, you’ll need to think about whether you want to let your super continue to grow or withdraw it when you return. While early withdrawals can be costly, keeping your super intact could allow it to accumulate further.
You’ll also need to re-establish your tax residency in Australia, which can have an impact on your income tax, super contributions, and other financial matters. If you’ve been living in Singapore as a non-resident for tax purposes, you’ll need to review your tax situation carefully when you return to ensure everything is in order.
Final Thoughts
Moving to Singapore as an Aussie expat offers a wealth of opportunities, but managing your finances across two countries can feel complicated. By understanding key financial concepts like tax residency, superannuation, and the SRS, you can ensure you’re making informed decisions that support your long-term goals.
Taking the time to understand your financial options as an expat can help you avoid potential pitfalls and make the most of your time in Singapore. Whether you plan to stay in this city long-term or eventually return to Australia, setting up a clear financial strategy now could bring you peace of mind. When you’re ready, feel free to schedule a complimentary consultation with me to discuss your financial goals and the steps needed to achieve them.
Jarrad Brown is an Australian-trained and qualified Fee-Based Financial Planner of Global Financial Consultants Pte Ltd providing specialist financial advice and portfolio management services to Australian professionals in Singapore.
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General Information Only: The information on this site is of a general nature only. It does not take into account your individual financial situation, objectives or needs. You should consider your own financial position and requirements before making a decision.
*Please note that Jarrad Brown is not a tax agent or accountant and none of the content outlined here should be taken as personal advice. You should consult your tax agent and financial adviser to review your current personal finances and financial goals to consider whether this strategy is appropriate for you.