The fate of PALM workers’ superannuation payments has come under scrutiny from two peak employment bodies who claim burdensome paperwork and a high tax rate is threatening the goodwill between participating countries.
The Australian Workers’ Union and Approved Employers of Australia have launched a campaign to lobby the government to lower the 35 per cent tax rate for superannuation withdrawals necessary when PALM workers leave the country.
AWU national secretary Paul Farrow said the PALM scheme was designed to develop good relations with Australia’s Pacific neighbours.
“The PALM scheme is not just about sourcing labour,” Mr Farrow said.
“It’s pretty tough to see how seizing 35 per cent of workers’ superannuation is sending the right message; I think it’s a very bad look for Australia.”
Mr Farrow said a recent study found a third of all PALM workers were ‘unable’ to access the super they earned.
“PALM workers tell us it leaves a very sour taste in the mouth,” he said.
“That’s the very opposite of what the scheme is meant to achieve.”
The AWU has called on Superannuation Minister Stephen Jones to lower the departure superannuation payout tax and to allow easier access to super by completing all paperwork on entering Australia.
The AWU also wants options for PALM workers to transfer their superannuation to retirement funds in their home countries and have more streamlined options for choosing Australian funds.
Mr Farrow commended the Federal Government on improving the scheme but said the 35 per cent super tax was scoring a “stupid own goal’.
“This is honestly one of the easiest changes I can imagine,” he said.
“I’ll be personally recommending to Stephen Jones that he push this through as a matter of urgency.”