Federal Government announces super changes
Nick Sherry
Future superannuation contributions and existing balances of temporary residents’ superannuation will be paid to the Federal Government, Senator Nick Sherry announced today.
Employers will have the opportunity to pay the superannuation to a super fund or to the Australian TaxationOffice (ATO).
The ATO and the Department of Immigration and Citizenship will use data matching to identify temporary residents superannuation held by super funds and request that it be transferred.
Temporary residents are currently able to claim their superannuation by applying for a departing Australia superannuation payment from their fund, a discussion paper on the Federal Treasury website said.
Under the new measures, which were first announced by the previous government, temporary residents will have to claim their superannuation within five years or it will be forfeited.
“The measure is not inconsistent with the way Australians who work overseas are treated on their permanent return to Australia, where in many cases they cannot access compulsory social security or employer pension contributions made in that overseas country,” Sherry said.
The Treasury discussion paper argues that many temporary residents do not claim their superannuation when they leave the country, adding to the amount of lost monies in the system.
“This change will help reduce the lost super problem” said Sherry.
Recommended for you
A relevant provider has received a written direction from the Financial Services and Credit Panel after a superannuation rollover resulted in tax bill of over $200,000 for a client.
Estimates for the calendar year 2024 put the advice industry on track for a loss in adviser numbers as exits offset gains from new entrants.
Adviser Ratings shares five ways that financial advice changed in 2024 with an optimistic outlook for 2025, thanks to the Delivering Better Financial Outcomes legislation.
National advice firm Invest Blue has announced several acquisitions, including the purchase of an estate planning and wealth protection business Lambert Group.
