Superannuation Refunds for Temporary Workers in Australia

In Australia it is compulsory for employers to pay superannuation to their employees in order that they will have funds available for retirement. Under legislation, minimum provisions are compulsory for employees. From July 2013, the minimum figure is 9.25% of salary, but people are encouraged to put aside additional funds as well. The minimum obligation is set to increase to 12%, gradually stepping annually from 2013.

Because of this minimum contribution it is always necessary, when negotiating an employment package, to clarify whether the salary being offered is inclusive or exclusive of superannuation

An individual can withdraw funds out of a superannuation fund when the person meets one of the conditions of release contained in Schedule 1 of the Superannuation Industry (Supervision) Regulations 1994. For most people, this is when they reach retirement age.

For overseas residents working temporarily in Australia it of course makes no sense to lock their funds up for years, and it is possible for them to apply for a refund of superannuation contributions once they have left Australia.

In order to qualify for a refund, it is necessary to demonstrate that you visited on a temporary visa with work rights (excluding retirement visas), that your visa has expired or been cancelled, and you have departed Australia.

If you have claimed a refund of superannuation, you are able to return to Australia on another visa while that claim is being processed. Note that the refund provisions do not apply to New Zealand citizens as they have the right to return, and work in Australia at any time.

An application for refund of superannuation can be made online. It is also possible to lodge a paper-based form, however if you do this, more work is required of you. If the on line option is adopted the taxation office will do all of the necessary work and forward your payment to you, all at no cost, although withholding tax, generally at a rate of 35%, will be taken out of your super payment superannuation payment before it is remitted to you.

The Departing Australia Superannuation Payment (DASP) online application form can be found at: www.ato.gov.au/departAustralia