From 18 December 2008, changes apply to unclaimed super for former temporary residents.
These changes mean that, after being notified by us, you will be required to pay the super interest held for certain departed former temporary residents to the Tax Office.
What are the proposed changes?
The two changes that affect you are the:
- payment of unclaimed super interests for former temporary residents to us
- new withholding tax rates for departing Australia superannuation payments (DASPs).
In March 2009, the Tax Office announced that, in response to industry feedback, the first scheduled lodgment and payment date is 15 June 2009.
In future financial years, the scheduled statement days are each subsequent 31 October and 30 April, to align with unclaimed money reporting obligations.
What will happen now?
We will send you a written notice listing the names of these former temporary residents, and details of any accounts we believe you hold for them. The notice we send you (a Temporary resident notification) will list members of your fund who were former temporary residents and where it has been at least six months since both of the following occurred:
- the member departed Australia, and
- the member's temporary visa was cancelled or expired.
You’ll then need to pay all relevant amounts you hold relating to these temporary residents to us, using arrangements similar to those for existing unclaimed money.
After departing Australia, a former temporary resident can claim their super at any time from either of the following:
- you (if you have not paid us the money)
- us (after you have paid us the money).
What are the new withholding tax rates?
From 1 April 2009, there will also be new withholding tax rates for DASPs. If the DASP application is made on or after 1 April 2009, these rates apply:
- 0% for the tax-free component
- 35% for a taxed element of a taxable component
- 45% for an untaxed element of a taxable component.
If the DASP application is made prior to 1 April 2009, these rates apply:
- 0% for the tax-free component
- 30% for a taxed element of a taxable component
- 40% for an untaxed element of a taxable component.
There may be different withholding tax rates for a DASP that is a roll-over super benefit. Contact us for further information.
Who is exempt from the changes?
The changes do not apply to certain members of your fund, retirement savings account (RSA), or approved deposit fund (ADF), including those who are at the relevant time:
- Australian citizens
- New Zealand citizens
- holders of a permanent or temporary visas
- former temporary residents who have left Australia and you only pay an income stream to
- holders of retirement visas (subclasses 405 and 410).
It also does not apply to certain trustees of a State or Territory public sector scheme or certain unfunded public sector schemes.
Last Modified: Thursday, 19 November 2009
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