If you’re temporarily living and working in Australia under the 457 visa, you’re most likely being paid mandatory superannuation by your employer. Because the 457 visa is temporary, you might be wondering what happens to the compulsory super contributions when you leave the country. When you depart Australia for good, any superannuation earnt while you were working on a 457 visa can be claimed through the Australian Taxation Office or directly through the superannuation fund.
What is 457 visa superannuation?
In Australia, it’s not just permanent residents that contribute to superannuation savings. Regardless of whether you’re a permanent or temporary Australian resident on a 457 visa, if you’re employed in Australia, your employer will have to make compulsory superannuation contributions on your behalf. In Australia, the current superannuation rate is 9.5 per cent of the employee’s salary. If you’re an employee with a valid Australian working visa, your employer is legally obligated to contribute 9.5 per cent of your salary to your nominated superfund each quarter.
Temporary residents on 457 working visas will inevitably build up superannuation benefits, which can be claimed once they’ve permanently departed the country.
What to look for in a 457 superannuation fund?
When you start a new job, your employer will give you an option to pay your 457 visa superannuation contributions into a fund chosen by you, or a default fund of their choosing. If you’re a temporary resident on a 457 visa, knowing how to pick a superannuation fund can be confusing. Here’s what to consider when comparing 457 visa superannuation funds.
Start by getting as much information about the 457 visa superannuation fund as possible; comparing funds and options will be much easier if you have more information. While a fund’s past performance is never a guarantee, it does help paint a short- and long-term picture of what kind of investment you’ll be making. The other factor you’ll want to consider when choosing superannuation for your 457 visa is accessibility. You’ll want to know how easily you can access your funds and keep track of the contributions your employer is making while you work. Other features to look out for are insurance fees and overall value for money.
Much like any other investment or financial product, superfunds charge various types of admin fees. Depending on how much you earn, these fees can eat into your contributions and cost you.
What happens to my 457 visa super when I leave Australia?
Depending on your super fund and how long ago you permanently left Australia, you can claim your superannuation benefits through the Australian Taxation Office or directly through your 457 visa superannuation fund. If it’s been less than six months since your 457 visa expired or you permanently left Australia, you may be able to claim your funds directly through your superannuation fund. If it’s been longer than six months, you may need to contact the Australian Taxation Office and apply for a departing-Australia superannuation payment. Before you claim your 457 visa superannuation, check whether there are any tax implications or legalities involved in withdrawing your superannuation.
It’s worth mentioning that, as of March 2018, the 457 visa will be replaced by a new temporary skill shortage visa (TSS). While the visa requirements may change, at this stage, there are no changes planned to the eligibility requirements for superannuation.