In a press release issued on 15 October 2007, the Treasurer, Peter Costello, said that, if re-elected, the Government will legislate, effective from 1 July 2008, to ensure that all future superannuation contributions and balances for temporary residents will be required to be paid to the Australian Government which will hold them on behalf of those who are entitled to them. This measure will enable the Government to establish a register of temporary residents’ superannuation, making it easier for them to locate and claim their superannuation. The Treasurer said that it will also ameliorate the problem of small balances becoming lost in the superannuation system and potentially being eroded by fees and charges.
Employers will still be required to pay Superannuation Guarantee contributions for temporary residents but will have the choice of continuing to make payments to a superannuation fund or paying contributions directly to the ATO. As part of this measure, superannuation providers will be required to transfer annually the balances (including existing balances) of superannuation accounts held by temporary residents to the ATO.
The new measure will not apply in respect of contributions or balances of New Zealand citizens.
For a copy of the Treasurer's press release, No 2007/110, 15 October 2007, go here