Employment Minister Agni Deo Singh said seasonal workers were taxed 35 per cent when they withdrew superannuation funds in Australia.
In a bid to address this, the Fiji National Provident Fund (FNPF) is setting up an office in Australia to handle Fijian seasonal workers’ superannuation transactions.
Mr Singh told The Fiji Times‘ online platform, The Lens @177, the superannuation issue was “cumbersome”.
“Their superannuation is deducted there, and when they complete their term and return home, they’re able to claim it, and when they do, it’s a bit of a cumbersome exercise,” he said.
“Then there’s a 35 per cent tax, so I said, ‘Look, this is not acceptable’. I raised this with the (Australian Employment and Foreign Affairs) ministers and the High Commissioner, and that’s something we need to address.
“The good part now is that our FNPF office is going to open there. Our FNPF team is already in Australia. They’ve been to Canberra, I think Sydney. They’re working, meeting with employers.” Mr Singh is attending the Fiji-Australia Business Council meeting this week with FNPF to be represented as well.
“So, we’ll discuss this issue of superannuation, how they can deduct and remit with assistance from FNPF, and then the taxation issue. During the business council meeting, we are also going to seek clarification and information on this provision in the 2023/2024 National Budget that they have, whereby they’re saying that so many families can move over. We really want to hear from them exactly what they propose to do and then see how it works for us. That’s something that is on our agenda for this meeting.”
