Temporary Residency Superannuation Legislation Amendments

The Temporary Residency Superannuation Act and the Superannuation (Departing Australia Superannuation Payment Tax) Amendments Act have both received Royal Assent on 11th December 2008.

Former position

Individuals holding temporary resident visas such as 457 subclass visas are currently eligible to access their superannuation benefits early before retirement age when their visas are cancelled or have expired, and they have departed Australia by applying for a departing Australia superannuation payment ("DASP").

Previously, any amounts which were unclaimed remained with the superannuation fund until they are claimed or eroded. If the individual was close to retirement age, they could leave their amount in the fund and obtain the cash tax-free when they reached preservation age instead of being taxed at the current tax rate of 30% applicable on DASP.