Temporary residents

Superannuation regulations restrict the payment of superannuation benefits and limit certain benefits and concessions to temporary residents.

Co-contributions and temporary residents

If you held an eligible temporary resident visa at any time during the financial year, you are not eligible to receive the Federal Government co-contribution.

Retirement and temporary residents

Generally, temporary residents will not have access to superannuation benefits due to retirement and will not be eligible to open an income stream. See Conditions of release below.

Payment of a benefit

Application for a release of a benefit by temporary resident departing Australia must by made through the Australian Taxation Office (ATO).

The ATO’s website has an online form for members who entered Australia on certain types of temporary resident visas and have now left Australia, and wish to claim the superannuation they accumulated in First State Super while in Australia. You can also phone the ATO on 13 10 20.

Please note that:

  • the superannuation of temporary residents will be transferred to the ATO as unclaimed money if six months passes after their visa expires or is cancelled, and they left Australia; and
  • where a temporary resident’s superannuation is transferred to the ATO as unclaimed money, an exit statement will not be issued from the fund.

Tax on amounts for those permanently departing Australia

Where a superannuation benefit is being paid to someone permanently departing Australia as a Departed Temporary Resident Payment (DASP), the withholding tax rate is:

  • 35% for a taxed element of a taxable component
  • 45% for an untaxed element of a taxable component

Conditions of release of a superannuation benefit for temporary residents

The Superannuation Industry Supervision (SIS) Regulation 6.01B(3) (conditions of release for temporary residents) states that from 1 April 2009 any person who holds, or has ever held, a temporary visa and is not an Australian citizen or a New Zealand citizen, or a permanent resident of Australia, or is not the holder of a subclass 405 (investor retirement) visa, or a subclass 410 (retirement) visa can only have money released to them under the following conditions of release:

  • the person satisfied a condition of release before 1 April 2009
  • Death
  • Terminal medical condition
  • Permanent incapacity
  • Temporary incapacity
  • As a Departed Temporary Resident Payment (DASP)
  • Excess contributions release authority
  • A transfer to the Australian Taxation Office as unclaimed money or departed temporary residents benefit.

Temporary residents do not have access to superannuation benefits because of severe financial hardship or on compassionate grounds.