International Students: Accessing Superannuation And Withdrawals

International students in Australia have been affected by the COVID-19 pandemic in many ways, including loss of work opportunities and unpaid superannuation. During the pandemic, international students and temporary visa holders were allowed to withdraw up to $10,000 from their superannuation fund to help with financial losses. However, there have been cases of students facing issues with withdrawing their superannuation, with some students reporting that their former employers did not pay their superannuation guarantee.

International students' eligibility to withdraw superannuation

International students in Australia have been affected by COVID-19 restrictions, which have impacted their work, studies, and living. During the pandemic, there was a sharp increase in international students seeking help in retrieving unpaid superannuation.

International students on temporary visas were initially not eligible for most of the Australian government's coronavirus support measures. However, in 2020, the government announced that temporary visa holders with working rights, including international students, could access up to $10,000 of their superannuation fund in the 2020-2021 financial year. This measure was intended to help those whose income had reduced significantly due to the economic downturn caused by the coronavirus. To be eligible, students had to prove financial hardship with documents showing a significant loss of income, overdue bills, unpaid rent, or inability to buy essential items. Their visa also needed to have been active for at least 12 months.

International students can normally only withdraw their superannuation when they retire or if they leave Australia permanently. This is done by applying for a departing Australia superannuation payment (DASP). Before submitting a DASP application, it is important to check with your employer to confirm that they have paid all the required superannuation contributions.

Visa requirements for superannuation withdrawal

International students and temporary visa holders in Australia can access their superannuation fund early in specific circumstances. Typically, individuals can only withdraw from their superannuation when they retire or leave Australia permanently. However, during the COVID-19 pandemic, the Australian government allowed eligible visa holders to withdraw up to $10,000 from their superannuation fund to alleviate financial hardship caused by the pandemic. This measure was intended to support visa holders whose income had stopped or significantly reduced due to the economic downturn.

To be eligible for early superannuation withdrawal during the pandemic, visa holders needed to meet specific criteria. Their visa had to be active for at least 12 months, and they had to provide documentary evidence of financial hardship, such as significant loss of income, overdue bills, or inability to pay for essential items. The assessment of eligibility for early superannuation withdrawal was made on a case-by-case basis.

For temporary residents, including those on international student visas, who have worked in Australia and accumulated superannuation, there is an option to withdraw their superannuation when they leave the country. This is known as a Departing Australia Superannuation Payment (DASP). To be eligible for a DASP, an individual's visa must have ceased to be in effect (expired or cancelled), and they must have left Australia without any other active Australian visa. It is recommended to initiate the DASP application process while still in Australia and possess all the necessary information.

The process for claiming superannuation as a temporary resident depends on the balance of the superannuation account. For accounts with a balance of $5,000 or more, a paper application to super funds may require a Certification of Immigration Status from Home Affairs, which incurs a fee. This certification confirms that the individual's visa has expired or been cancelled. Additionally, original copies of the passport and signed written confirmation of bank account details are required for payments over $5,000. For accounts with a balance of less than $5,000, individuals can provide evidence of their departure from Australia and visa expiry without the need for the Certification of Immigration Status.

Maximum withdrawal amount

In Australia, international students are only allowed to withdraw from their superannuation when they retire or if they leave the country permanently. However, during the COVID-19 pandemic, the government allowed international students and temporary visa holders to access their superannuation early. This was to provide financial support to those who had lost their income or experienced a significant reduction in income due to the pandemic.

To be eligible to withdraw their superannuation early, international students had to meet certain conditions set by the government. They had to prove financial hardship with documents showing a significant loss of income, overdue bills, unpaid rent, or inability to buy essential items. Their visa should have been active for at least 12 months. Additionally, the early withdrawal was only allowed once in the 2019-2020 financial year, with a maximum withdrawal amount of $10,000.

It is important to note that superannuation is a government scheme to help individuals save for retirement. Usually, employees and employers contribute a fixed amount to the fund with every pay cycle, and the money is invested by the superannuation company until the employee retires. While international students working in Australia can contribute to superannuation, they typically cannot access this money until retirement unless they leave the country permanently.

The minimum superannuation withdrawal amount is determined by the account balance and age of the individual. The calculation is done by multiplying the pension balance by a minimum percentage factor, which is then adjusted annually on July 1. For example, an individual starting a pension income stream at 64 years old with a balance of $500,000 would need to withdraw a minimum of $20,000 in pension payments for the 2024/2025 financial year.

Conditions for withdrawal

International students in Australia have been affected by COVID-19 restrictions, which have impacted their work, studies, and living. During the pandemic, there was a sharp increase in international students seeking help in retrieving unpaid superannuation.

• International students on temporary visas with working rights can have early access to their superannuation fund to help overcome economic difficulties resulting from the coronavirus.
• They must prove financial hardship with documents showing a significant loss of income, overdue bills, unpaid rent, or inability to buy food and essential items.
• Their visa should have been active for at least 12 months.
• The release of superannuation will be decided on a case-by-case basis.
• This facility is available only for those facing severe financial strain due to job loss or unemployment, and struggling to survive with their current savings.
• Students are normally allowed to withdraw from their superannuation when they retire or leave Australia permanently.
• They can apply to have their superannuation paid as a Departing Australia Superannuation Payment (DASP) after they leave.
• Before submitting a DASP application, students should check with their employer to confirm that they have paid all the required superannuation.
• They can check their current superannuation balance through their fund's online portal to ensure their request is based on the latest available balance.

What to do if employers don't pay superannuation

International students and temporary visa holders in Australia whose income has stopped or decreased due to the coronavirus can access up to $10,000 of their superannuation in a financial year. However, this is contingent on certain eligibility criteria. For instance, the visa must have been active for at least 12 months, and financial hardship must be proven by documents.

If an employer is not paying the compulsory superannuation guarantee, the issue can be reported to the Australian Taxation Office (ATO) using their online tool. The ATO can then investigate the employer based on the information provided, and there will be no impact on the visa status. The ATO can also provide information on entitlement to super in the National Employment Standards (NES) and extra terms about super in awards.

Additionally, the Fair Work Ombudsman (FWO) can provide information on the entitlement to super, and they can also receive payments from employers for outstanding wages and entitlements. If an employee believes their superannuation guarantee (SG) contribution hasn't been paid correctly, they can lodge a referral with the ATO. The ATO will then use Single Touch Payroll and superannuation fund data, combined with employee referrals, to identify employers who may not have met their super guarantee obligations. If an employer is found to be non-compliant, the ATO will implement preventative and corrective strategies.

Employees can also check their last Member Statement from their super fund or contact the fund to confirm whether their employer has paid their super contributions for the period in question. It is also possible to check how much has been paid into a super fund by looking up the super account in ATO online services and viewing the super contributions that have been paid and reported.

Frequently asked questions