Australia Gives Tax Refunds To Former Temporary Workers

by Mary Swire, Tax-News.com, Hong Kong

14 January 2004

Under a recent amendment to Australian pension legislation, foreign workers employed on a temporary visa who no longer reside in the country may be entitled to a refund on superannuation contributions made since 1992.

According to Mark Partridge, who has established a firm specialising in the tracing and refunding of ‘super’ contributions known as Ozsuperfunds, the average payment could be in the region of A$1,000. However, whilst many temporary high earners may be entitled to much larger refunds, Partridge warns that the refunds are liable for tax at source of 30%, rising to 40% depending on the fund.

“An increasing number of visitors to Australia work here on an eligible temporary resident visa and leave the country without knowing they can claim a sometimes significant amount of money that is rightfully theirs - their superannuation,” noted Ozsuperfunds, which has been appointed as an official intermediary by the Australian Tax Office.

“If you have spent time working in Australia, chances are you have earned superannuation and may not have even known it,” the firm adds.

Australia has approximately 8,000 separate superannuation funds in existence, making the task of tracing refunds somewhat daunting even for the experts.

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