Temporary residents are taxpayers who hold a temporary visa granted under the Migration Act 1958, are not Australian citizens or the holder of a permanent visa, and don’t have a spouse who is an Australian resident.
Temporary residents who are working in Australia are treated the same as all Australian workers and accumulate superannuation benefits. Their employer is required to pay 9.5% of their ordinary times earnings (basically their gross wages with a couple of adjustments) to a superannuation fund on their behalf.
When the temporary resident has departed Australia permanently and had their visa cancelled they can apply online to have their accumulated superannuation benefits refunded to them (after the ATO has deducted the appropriate withholding tax).
The ATO withholding tax rates that apply to payments of a Departing Australia Superannuation Payment are:
- 0% for the tax free component.
- 38% for a taxed element.
- 47% for an untaxed element.
Australian citizens, New Zealand citizens, permanent Australian residents, retirement visa holders, and investor retirement visa holders cannot claim a Departing Australia Superannuation Payment.
Further information is available at www.ato.gov.au/departaustralia.