Anyone had experience in this?? How it works and so on?
As far as I know, we paid 15% tax on Super. Now the govt. wants another 38% before you can take it out (effectively 68 cents out of a dollar to ATO provided your fund did not make a loss).
This really discourages me to leave this country…but the govt. makes it really hard to stay here permanently.
Confused enough?
Provided Australia has a considerable number of foreign workers, there should be some different regulations for their parts.
From a common sense / human rights / free labour market / trade point of view, why would workers care about others' country issues.
Anyone experienced working in other countries?
why would workers care about others' country issues.
ScoMo Treasurer of Australia:
“The Government will increase the tax on working holiday makers’ superannuation payments when they leave Australia to 95 per cent. This is consistent with the objective of superannuation, which is to support Australians in their retirement, not to provide additional funds for working holiday makers when they leave Australia.”
Instant Karma
On the brighter side, this encourages overseas temp. try hard to stay here permanently.
Think of it as a withholding of your super in exchange for the time you spent here earning money in Australia. It's not just you though, the government is eyeing ALL of our super and wracking their brains for ways to get their hands on it in one way or another. Eventually there will be rules as to how you can spend your own super payout. Apparently we are meant to live off it, but the way things are going most people will have to buy property with it, it might be their only chance.
most people will have to buy property with it,
And if it happens it'll be the worst thing to happen to first home buyers in decades. Simultaneously the best thing to happen to the Retirees who currently own all the property (and the banks who will get to carve even more profit in interest on the ever expanding loan principals).
House prices will soar (again) and today's 15 year olds will have even less chance than they already have of ever owning their own home.
This idea kicks the can down the road and doesn't solve anything whilst further fuelling a property bubble that needs to deflate or burst.
Headed to vietnam?
why so?
Just weighing all the possibilities and got confused…
minimum wage, government takes over 60% in tax, you make more money working a for 7/11 store. I think the government has a slave labour problem if them rates are true.
A part of your superannuation consists of other contributions, not sure if it is govt or employer?
That part remains in Australia.
No govt. contributed for foreigners, all from employers.
For argument sake, this tax regulation is so shitty but merely no one knows about it. They're painting the picture of fair work commission and other bullshit foreign worker protection / fair share and make a big deal of it (ABC programs, SBS Insights…). On the other hand, they took a big chunk for their own purpose (who knows who's gonna travel from Melbourne to Geelong by choppers like Bronwyn Bishop?)
On the brighter side, tax is a great thing for a civilized society. How people spend it is more important. But ~70% for foreign workers who wants to take out super, simply a rip-off that all Ozbargainers would get pissed!
Are you an Australian citizen or here on a visa?
On a visa, I'm weighing possibilities before making a decision to leave or to stay.
As an add on to the above thread, does anybody know the rules and regulations regarding claiming Super and then re-entering Aus?
I am just about to come to the end of a 2 year WHV and am planning to head back to the UK for about 6 months. My plan was to then re-enter Aus to study for a couple more years. With the new tax % taking place on the 1st July 2017, would I be able to claim my super once my current Visa expires (28th may 2017) then re-enter Aus later in the year?
Will claiming my Super have any implications when applying for my Student visa? If so, then I will leave my super where it is and take the 65% hit!
I found this useful, have a read, but bear in mind that DIBP is a dick.
https://www.unisuper.com.au/~/media/291FC8D44A274DC691584D71…
"From 1 July 2017, a new departing Australia superannuation payment (DASP) tax rate of 65% will apply to working holiday makers (WHM). WHM applications processed on or after 1 July may be liable for the higher tax rate."
Sounds about right. Superannuation was setup and made mandatory to take the future financial strain off the Australian Government pension systems by providing retirement funds for people at later stages in their life. Its not intended to be a bonus source of funds for foreign works, although it is technically your money.
Australia is an easy country to move to permanently, compared to others around the world. Just follow the correct process to do so.