In May 2008 the Hon Nick Sherry, Minister for Superannuation
and Corporate Law, released a consultation paper on payment of
temporary residents' super to the Australian
The proposed changes caused much angst and after considering
the submissions received in relation to the planned changes,
the Government has now decided to significantly modify its
Original proposed measures
It was originally proposed that all superannuation
contributions and superannuation balances held by temporary
residents be transferred annually to the Australian Taxation
Office and that no interest was to be paid on these
Amounts not claimed within 5 years were also to be
There will no longer be an annual sweeping of accounts with
the need to reopen a new account each year. Employers will
continue to make super contributions for temporary residents in
the same way as for other employees.
However, the Government still proposes to use the unclaimed
money arrangement to transfer unclaimed balances still
remaining after six months of the person's permanent
departure from Australia and no longer holding a visa.
It appears that the requirement to make a claim within 5
years of permanent departure (otherwise having the accumulated
balance forfeited to the Government) has been removed.
We will provide a further update once the legislation is
tabled before Parliament in December 2008.
The content of this article is intended to provide a
general guide to the subject matter. Specialist advice should
be sought about your specific circumstances.
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Long experience representing many of Australia's leading employers has taught us that in employment litigation the identity of an employee's representative is a major factor in how employee litigation runs.
Australian employees receive certain entitlements (such as annual leave and superannuation) where contractors do not.
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