Pacific workers face barriers to claiming super: University

Financial experts are calling on the government to simplify the process for Pacific and Timor-Leste workers that come to Australia under the Pacific Australia Labour Mobility (PALM) scheme to access unclaimed superannuation once their visa expires, according to the University of South Australia (Uni SA).

Uni SA said workers from the Pacific and Timor-Leste on nine-month visas typically accumulate $3000-$4000 in superannuation before tax, while those on four-year visas can amass up to $16,000. However, these funds can only be claimed after workers return home, and the process is complex, leaving millions unclaimed.

There are over 31,000 PALM workers filling labour shortages in rural and regional Australia's agriculture, aged care, hospitality, and tourism sectors as of March.

Uni SA senior lecturer and manager of its tax clinic Rob Whait highlighted that the Australian Taxation Office holds significant unclaimed superannuation owed to PALM workers.

"Completing the required paperwork requires workers to be proficient in English, seeing as the forms aren't available in other languages. It also requires access to a computer and the internet as the forms can't be downloaded and need to be completed online, then emailed to the relevant authority," Whait said.

"In PALM countries, English is a second language, and the internet is not as readily accessible as it is here. The responsibility for making a claim lies solely with the worker, and there is no obligation for the employer here in Australia to provide information about how workers can claim their superannuation."

Whait and Connie Vitale from Western Sydney University proposed policy reforms, including allowing superannuation to be paid directly into workers' home country super funds during their employment or as part of their wages.

Their analysis suggested that direct payments to home country funds as the most practical solution, though recent visits to PALM worker sites in South Australia and New South Wales revealed a preference for upfront wage payments.

"A leader among the PALM workers said that he would prefer Australia to follow the New Zealand approach where superannuation is not paid at all, and instead, they get all their money paid as wages. Another PALM worker said that the superannuation funds in their country are not being managed in their best interests," Whait said.

"After visiting PALM worker locations, we were left with the impression that many PALM workers would rather have immediate access to their money to help their families and communities now, rather than wait for retirement.

"Further research can confirm these preferences and impressions."

Whait added that the PALM scheme is arguably of great strategic importance to Australia since it helps to build and maintain positive relationships with the Pacific region."Enhanced economic prosperity arises from PALM workers taking the skills they've learnt in Australia back to their own communities," he said.

"PALM workers are collectively leaving many millions of dollars in superannuation unclaimed, but any potential reforms must consider recent political tensions in the Pacific.

"If done correctly, PALM superannuation policy reform presents Australia with an opportunity to rebuild and strengthen relationships with its Pacific neighbours."