International Law

Government announces changes to Temporary Residents' Superannuation

Senator the Hon Nick Sherry, Minister for Superannuation and Corporate Law, has announced the final form of the Government measure to require temporary residents? superannuation to be paid to the Commonwealth.

Under the new approach temporary residents' superannuation will remain in their fund while they are in Australia, rather than being swept out annually, and they will continue to be able to take their superannuation with them when they depart.

Unlike the initial measure, employers will now be able to make their Superannuation Guarantee payments for temporary resident employees into funds in the same way as for any other employee. The Government will use the existing unclaimed superannuation arrangements to transfer the account balance of temporary residents six months after they depart Australia and no longer hold a visa, if the person has not claimed their super on departure.

Departed temporary residents will also be able to claim back, at any time, any superannuation that has been paid to the Commonwealth.

The new arrangements will also allow for the insurance cover of temporary residents as they will continue to be fund members while they reside in Australia.

The changes will take effect from the date of Royal Assent, which is expected by the end of 2008.

Full post as published by Australian Regulatory Compliance Review on August 09, 2008 (boomark / email).