Temporary Residents legislation update
There have been recent changes to legislation which affects the treatment of super payments to former temporary residents. The changes came into effect from 1 April 2009.
Background:
Prior to 1 April 2009, former temporary residents who held a valid work visa could claim the super they had accumulated in Australia from their superannuation fund(s) after they had permanently departed Australia. Withholding tax was deducted prior to the money being released.
New claim procedure:
As a result of the abovementioned changes, super funds must now forward all super amounts owing to former temporary residents to the Australian Taxation Office (ATO). Interest will no longer accrue on the amounts transferred to the ATO.
A former temporary resident can still claim their super but only after a minimum of 6 months has passed since their permanent departure from Australia. Payments to former temporary residents will be, with few exceptions, subject to withholding tax of 35% plus the Medicare levy.
Further information for former temporary residents wishing to claim their super can be found at:
