Legislative Updates
Superannuation Guarantee Contribution (SGC).
From July 2002 the Superannuation Guarantee Contribution has been 9%.
From July 1, 2003, legislation requires employers to pay the SGC to superannuation funds at least every quarter,no later than the 28th day following the end of a quarter (March, June, September, December).
Departed Temporary Residents.
Backpackers can now claim their superannuation (SG) benefits upon leaving Australia.
From 1 July, 2002, 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. 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.
Departing Australia Superannuation Payment (DASP) links
- For an explanation of the conditions which apply to the claiming of the Departing Australia Superannuation Payment click here
- to access the ATO's online application click here
- or to download an application for a DASP payment click here.