Gary Gray (Brand, Australian Labor Party, Parliamentary Secretary for Regional Development and Northern Australia) Share this | Hansard source

I thank all the members who contributed to this debate: the members for Aston, Fadden, Swan, Flynn, Wakefield, Makin, Oxley, Dawson and Blair. To briefly sum up: the Temporary Residents’ Superannuation Legislation Amendment Bill 2008 will make changes to the Superannuation (Unclaimed Money and Lost Members) Act 1999 to help address the growing number of lost superannuation accounts in the system. In the tax office’s 2006-07 annual report, over six million lost accounts have been reported on the lost members register, rising from 5.7 million in that income year alone, representing a total value of some $12 billion.

A temporary resident who departs Australia without taking their superannuation with them can add to the lost accounts problem. Temporary residents are currently able to withdraw their superannuation by applying for a departing Australia superannuation payment. However, many do not do so. This bill will help reduce the number of lost super accounts by using the mechanism currently in place to deal with unclaimed superannuation money. The amendments will require superannuation funds to report and pay the unclaimed superannuation of departed temporary residents to the tax office by a due date. The superannuation of a temporary resident will only become unclaimed after the individual has departed Australia and ceased to be the holder of a visa and at least six months have passed and the individual has not claimed their superannuation. Departed temporary residents will continue to have the opportunity to claim their superannuation and thereby avoid having unclaimed superannuation by applying for a departing Australia superannuation payment.

I note that the bill will not affect the superannuation of temporary residents while they continue to hold a visa. Their super will not be paid to the Australian Taxation Office but will remain in a fund. As well, the superannuation of Australian citizens, New Zealand citizens, permanent visa holders and holders of retirement visa 405 or 410 will not be affected. In addition, departed temporary residents who have not claimed their superannuation are entitled to claim back at any time the unclaimed superannuation that has been paid to the tax office. This provides a consistent or better treatment to temporary residents in Australia compared to many other countries, where temporary residents may be unable or limited in their ability to access their compulsory social security contributions.

Finally, the Superannuation (Departing Australia Superannuation Payments Tax) Amendment Bill 2008 contains an amendment which will make a small increase to the withholding tax rates that currently apply to departing Australia superannuation payments. The tax is aimed at ensuring that the tax concessions for superannuation are appropriately targeted to those who retire in Australia. The tax rates will rise by five percentage points, to further recoup the tax concessions provided to the departing temporary residents. I commend these bills to the House.

Question agreed to.

Bill read a second time.

Message from the Governor-General recommending appropriation announced.

See this speech in context