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Temporary residents legislation introduced.



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NO.060

TEMPORARY RESIDENTS LEGISLATION INTRODUCED

Senator Nick Sherry, Minister for Superannuation and Corporate Law, today announced the introduction into Parliament of legislation which will help address the Government’s concerns over the growing amount of lost or unclaimed superannuation.

The Temporary Residents’ Superannuation Legislation Amendment Bill 2008 and the Superannuation (Departing Australia Superannuation Payments Tax) Amendment Bill 2008 were both introduced in the House of Representatives today.

“While temporary residents who depart Australia are able to take their superannuation with them as a departing Australia superannuation payment (or DASP), many do not do so. This contributes to the total amount of lost monies in the system,” said Minister Sherry.

The legislation provides that the superannuation of a temporary resident will become unclaimed and payable to the Commonwealth after the individual ceases to hold a temporary visa, has departed Australia and at least six months have passed and they have not claimed their superannuation.

The superannuation of Australian citizens, New Zealand citizens, current holders of a permanent or temporary visa, those applying for permanent residency and those holding retirement visas (405 and 410) will remain in their superannuation fund and will not be required to be paid to the Commonwealth.

“It is important to note that temporary residents who fail to claim their superannuation when they depart and consequently have unclaimed superannuation paid to the Commonwealth, can later claim back their money at any time.”

“This outcome provides a consistent or better treatment to temporary residents compared to that in many other countries where temporary residents may be unable or limited in accessing their compulsory social security contributions,” Minister Sherry said.

Media Release of 25/09/2008

29/09/2008 http://minscl.treasurer.gov.au/displaydocs.aspx?doc=pressreleases/2008/060.htm&pag...

The proposed changes will apply from the date of Proclamation, with the first payments from superannuation funds to the Australian Taxation Office in respect of departed temporary residents expected to occur in April 2009.

CANBERRA 25 September 2008

Contact: Anna Fenech - 0417 454 811

29/09/2008 http://minscl.treasurer.gov.au/displaydocs.aspx?doc=pressreleases/2008/060.htm&pag...