06 May 088 Temporary residents and superannuationThe previous Coalition Government announced in the 2007-08 Mid-Year Economic and Fiscal Outlook a measure to require the future superannuation contributions and existing balances for temporary residents to be paid to the Australian Government, with effect from 1 July 2008. Treasury has advised that the current Government is deferring commencement of the measure to allow time for consultation. The measure will commence on the date the legislation receives Royal Assent (expected before the end of 2008).
Under the measure, temporary residents who permanently depart Australia can claim their superannuation (subject to the existing withholding tax arrangements) by contacting the Tax Office within five years of departing the country. Temporary residents who become permanent residents will have their superannuation transferred into a superannuation fund (subject to the same tax arrangements that apply to Australian residents) with interest.
The Government is seeking comments and submissions by Monday 26 May 2008 to assist in settling the final administrative and legislative features of the measure. Further details are contained in the publication Temporary Residents and Superannuation.
For a copy of the Treasury advice, go here
For a copy of the publication Temporary Residents and Superannuation, go here