Written by

Steven Lee

Mortgage Director, ODIN Mortgage & Tax

10+ years in Australian banking and mortgage lending

Last reviewed

Updated on: October 8, 2026 View profile →

If you are an Australian living abroad and trying to coordinate your superannuation with a property purchase, the ATO does not make things simple. As a non-resident, your super fund earnings, contributions, and withdrawals are all still subject to Australian tax rules, and the interaction between those rules and your property plans can be costly if you get the sequencing wrong. The key insight most expats miss: the decision to access super and the decision to buy Australian property are treated as entirely separate events by the ATO, and conflating them often leads to a larger tax bill than necessary.

How Does the ATO Tax Super Contributions When You Are a Non-Resident?

Non-resident status does not exempt you from Australian super tax; it changes how certain contributions are treated. Your employer’s Superannuation Guarantee (SG) contribution, currently set at 12% of ordinary time earnings for 2025-26, goes into your fund and is taxed at 15% on entry, exactly as it is for Australian residents. What changes is your ability to claim certain tax offsets.

• Non-concessional contributions (after-tax personal contributions): Subject to the standard cap. As a non-resident, you can still make these, but you must meet the work test if you are aged 67 to 74.
• Low Income Super Tax Offset (LISTO): Designed so low-income earners do not pay more tax on contributions than on take-home pay [superannuation.asn.au]. Most expats earning overseas incomes above the threshold will not qualify.

One mechanism worth understanding clearly: concessional contributions are taxed at 15% inside the fund rather than at your marginal income tax rate. Think of it like a pre-paid tax arrangement. You pay a known, capped rate now in exchange for sheltered fund growth later. For expats in high-tax jurisdictions, this can still be advantageous, but the cross-border interaction with your country of residence’s tax treaty needs separate professional review.

Can Australian Expats Use the First Home Super Saver Scheme?

The First Home Super Saver (FHSS) scheme lets eligible Australians make voluntary super contributions and later withdraw them to fund a first home deposit. Eligibility, however, is tightly defined, and non-residency creates complications.

• You must never have owned residential property in Australia previously (subject to hardship exemptions).
• Voluntary concessional or non-concessional contributions made while overseas can count toward the FHSS, provided you were an Australian resident for tax purposes at the time of contribution.
• Contributions made as a non-resident for Australian tax purposes generally do not qualify for FHSS release.
• The property purchased must be in Australia, and you must intend to live in it for at least six months within the first 12 months of ownership.

This last condition is where expats most commonly hit a wall. If you are buying as a long-term rental investment while living overseas, the FHSS is not the right tool. The scheme is specifically structured for owner-occupier intent, which conflicts with many expat purchasing scenarios where the plan is to rent the property until repatriation.

What Happens When You Withdraw Super as a Non-Resident?

Building on the contribution tax picture above, the harder question is what happens on the way out. Withdrawals from super are taxed differently depending on your age, your residency status, and the components of your fund balance.

Australian citizens and permanent residents cannot access DASP. That distinction matters because expats sometimes confuse DASP with other early-release pathways. If you are an Australian citizen living in Dubai or Singapore, your super stays locked to standard preservation rules regardless of your physical location.

How Does Your Super Strategy Affect Your Australian Property Purchase?

Stepping back from the tax detail, a separate concern is how the timing and structure of your super interacts with your borrowing position. Super balances are not treated as borrowable assets by Australian lenders, so your fund balance does not directly increase your assessed borrowing capacity. What it affects is your deposit picture and post-purchase financial buffer.

For expats seeking an Australian expat home loan or an expat mortgage in Australia, the practical reality is:

• Deposit source matters. Lenders require evidence that your deposit is genuinely yours (genuine savings requirements). Super held in a fund cannot be shown as accessible savings unless you have a specific release mechanism confirmed. Attempting to count locked super as a deposit can cause delays or declines.
• Liquidity after purchase. If your liquid savings are thin because you have been maximising super contributions, lenders may question your ability to service the loan through market changes. Strong super does not offset thin liquid reserves in most lender assessments.
• FHSS withdrawals as deposit. If you legitimately qualify for FHSS release, those funds can be counted as deposit savings. Proper sequencing with your loan application timeline is critical.

ODIN Mortgage works alongside ODIN Tax to sequence these decisions, so the tax treatment of any FHSS release or super strategy is considered before the loan structure is locked in, not after settlement.

Do Non-Residents Need FIRB Approval to Buy Property in Australia?

Yes, in most cases. Australian citizens living overseas are generally exempt from Foreign Investment Review Board (FIRB) approval requirements when purchasing residential property. Permanent residents living abroad may also be exempt depending on specific conditions. However, temporary residents and foreign nationals are generally banned from buying established dwellings from 1 April 2025 to 30 June 2029, and need FIRB approval for other residential purchases, and all non-residents are subject to FIRB review for certain property types.

FIRB rules are subject to change, and thresholds, fees, and exemptions depend on individual circumstances. ODIN Mortgage provides FIRB compliance guidance as part of its loan structuring process.

Frequently Asked Questions

Can I contribute to my Australian super while living overseas?

Yes. Australian citizens and permanent residents can continue making voluntary contributions to their super fund from overseas. The type of contribution available (concessional or non-concessional) and any tax deductibility depends on your residency status for Australian tax purposes and whether you meet relevant work tests.

Is my super taxed differently because I am a non-resident?

The 15% contributions tax inside the fund applies regardless of your residency. However, your ability to claim offsets like LISTO may be reduced or eliminated, and your country of residence may also impose tax on super earnings under its own rules. Tax treaty implications vary by country.

Can I use my super to buy a house in Australia as an expat?

Not directly. Super is preserved until you meet a condition of release. If you qualify for the FHSS scheme and made eligible voluntary contributions while a resident for tax purposes, you may be able to release those contributions as a deposit. Standard super balances cannot be accessed simply because you are purchasing property.

What is the concessional contribution cap for 2025-26?

The concessional contribution cap for 2025-26 is $30,000 per year. This includes employer SG contributions and any salary sacrifice amounts. Contributions above this cap are taxed at a higher rate.

Does my super balance help me get a bigger expat mortgage in Australia?

Not directly. Australian lenders assess borrowing capacity based on income, liabilities, and liquid assets, not locked super balances. Super cannot be used to demonstrate serviceability or accessible deposit unless you have a confirmed release mechanism. Borrowing outcomes depend on individual circumstances and lender policy.

Do I need FIRB approval as an Australian citizen living overseas?

Australian citizens are generally exempt from FIRB approval for residential purchases regardless of where they live. However, exemptions depend on specific conditions, and FIRB rules are subject to change. Always confirm your position before proceeding.

How is the employer SG rate calculated in 2025-26?

The employer Superannuation Guarantee rate is 12% of ordinary time earnings for 2025-26. This is the mandatory minimum your Australian employer must contribute on your behalf.

References

1. Explainer: new super tax legislation introduced to Parliament – ASFA (superannuation.asn.au)