As retirement nears, many Australians begin to reassess whether their superannuation is still working as hard as it could be. For Australian expats, or those who have made additional contributions after starting a pension, a superannuation refresh could be a simple yet powerful strategy to improve outcomes in retirement.
A pension refresh is not about taking unnecessary risks. It’s about reassessing what you already have and adjusting the structure to better reflect your current situation. For many clients, particularly returning expats or long-term residents, this approach has resulted in:
More tax-effective retirement income
Fewer superannuation accounts to manage
A clearer financial picture and improved planning confidence
For insights into recent tax changes affecting foreign residents, read Craig Holding’s latest article:
Key 2025 changes to Australia’s Foreign Resident Capital Gains Tax
What is a Superannuation Refresh?
A superannuation refresh, also called a pension refresh, involves stopping your current account-based pension, returning the funds to the accumulation phase, and then starting a new pension that includes any additional non-concessional (after-tax) contributions made since the original pension began.
This strategy increases the tax-free portion of your super balance. According to the Australian Taxation Office, the tax-free portion of your super pension income is not subject to tax, which can make a meaningful difference to your income in retirement
Three Key Benefits of a Superannuation Refresh
1. Improved Tax Efficiency
In the accumulation phase, earnings on your super are taxed at up to 15%. Once moved to the pension phase, those earnings can become completely tax-free for people over age 60. By refreshing your pension and including additional after-tax contributions, you can reduce the taxable portion of your income and draw more of your retirement income tax-free.
2. Higher Tax-Free Balance
It is common for people to keep contributing to their super after starting a pension, especially if they are still working or receiving lump sums. These contributions are not included in the original pension. A refresh allows you to include them in a new pension arrangement, raising the tax-free portion of your balance.
3. Consolidated, Easier-to-Manage Accounts
Over time, it is easy to accumulate multiple superannuation or pension accounts. A refresh provides a natural opportunity to consolidate your super into a single pension account. This simplifies performance tracking and gives you a clearer overview of your financial position, particularly helpful if you have worked internationally or moved frequently.
Important rules and limits
While a superannuation refresh offers several advantages, there are rules to keep in mind:
- The annual cap for non-concessional contributions is currently $120,000 for the 2024–25 financial year (Budget 2024).
- If you are under 75, you may be eligible to use the bring-forward rule and contribute up to $360,000 over three years.
- Superannuation laws are subject to change. What is suitable now may not be right in a few years, which is why regular reviews are essential.
Why expats should pay attention
For Australian expats, superannuation planning can be more complex due to currency exposure, residency status, and cross-border tax issues. A pension refresh offers a structured way to manage these factors while improving retirement income flexibility.
Whether you are returning to Australia or managing your super from overseas, reviewing your pension structure can help ensure your superannuation is aligned with your financial goals and current residency.
Get personalised advice
Making decisions around superannuation and retirement income requires a full understanding of both the rules and your personal financial situation. At GSB, we work with clients across different stages of life to help them build smarter, more resilient financial strategies.
If you are considering a superannuation refresh or simply want to understand your options better, I would be happy to help you navigate the process.
Get in touch
Contact GSB today if you would like to discuss any of these matters with our in-house team.
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Disclaimer
This article is provided for general information purposes only and does not constitute personal financial, tax, or legal advice. The content has been prepared without taking into account your individual objectives, financial situation, or needs. It is intended for individuals who are not currently tax residents in Australia. If you are residing in Australia, you should seek advice from a financial adviser licensed to provide services under Australian law.
Superannuation rules and tax legislation are subject to change and may affect the suitability of any strategy discussed. Past performance is not indicative of future results, and all investments carry risk. Strategies such as pension refreshes involve regulatory and tax considerations and may not be appropriate for all individuals. You should not make decisions based on this article without first consulting a qualified financial adviser.
GSB Capital Ltd is registered in the Dubai International Financial Centre (DIFC), licence no. CL4377, and is regulated by the Dubai Financial Services Authority (DFSA) under reference number F006263.