The Government has introduced two superannuation bills to help address the growing amounts of lost or unclaimed superannuation, Minister for Superannuation and Corporate Law Senator Nick Sherry announced.
The Temporary Residents' Superannuation Legislation Amendment Bill 2008 and the Superannuation (Departing Australia Superannuation Payments Tax) Amendment Bill 2008 were both passed in Parliament last week.
Under the legislation, 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.
The superannuation of Australian and New Zealand citizens, current holders of a permanent or temporary visa, those applying for permanent residency and individuals holding retirement visas will remain in their fund and will not be required to be paid to the Commonwealth.
"While temporary residents who depart Australia are able to take their superannuation with them as a departing Australia superannuation payment, many do not do so. This contributes to the total amount of lost monies in the system," Senator Sherry said.
"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."
The proposed changes will apply from the date of proclamation. The first payments from superannuation funds to the ATO in respect of departed temporary residents are expected to occur in April 2009.
