News: News Archives: Departed Temporary Residents

Backpackers can now claim their superannuation (SG) benefits upon leaving Australia

From 1 July, eligible “temporary residents” can access their superannuation (subject to withholding tax) when they permanently leave Australia . Some 275,000 foreign nationals apply to visit and work temporarily in Australia each year and have been unwittingly leaving millions of dollars behind when they permanently depart. A significant number of these have worked as pickers in orchards and vineyards and other primary industry enterprises. Recognising that temporary residents will not be retiring in Australia , the new law allows them to access superannuation contributions made on their behalf once they depart permanently.

In a media release C29.03 of 17 April 2003 , the Assistant Treasurer said that the Tax Office will undertake an information campaign to ensure that working visitors are made aware of their right to access their superannuation money.

During their stay in Australia , these “temporary residents” need to be encouraged to;

• Be aware of the superannuation fund their employer is contributing to on their behalf;
• Keep a record of the amount of superannuation paid by each employer;
• Contact the superannuation fund(s) before they leave Australia to check if they are eligible to access their superannuation benefits.

As the largest superannuation fund covering rural, regional and coastal workers throughout Australia , Prime Super has a long history of maintaining superannuation accounts of “temporary residents” following the ‘harvest trail’.

It had long been a source of frustration, that employers and workers alike, had been required to participate in a system where such small contributions were perceived to be eaten up in Government taxes and fees. Prime Super welcomes the new initiatives and will work with Farming and Seafood groups to ensure that Employers contributions will end up in the hands of the “temporary residents” who worked to gain them.