Backpacker superannuation

Paying super to backpackers

The ATO has issued the following reminders to employers, that backpackers on working holidays:

  • are considered temporary residents, and are entitled to superannuation guarantee if they are paid $450 or more before tax in a calendar month; and
  • who leave Australia can claim the super paid to them as a Departing Australia superannuation payment (‘DASP’), providing all requirements are met.

Anyone employing backpackers should:

  • check they hold a valid visa using the Visa Entitlement Verification Online (‘VEVO’) service;
  • use the ATO’s Super guarantee eligibility decision tool to determine if they are eligible for super;
  • offer them a choice of super fund if requested, and follow the same steps as for any other worker before they start working for the employer; and
  • advise them that they can start their DASP application using the ATO’s free online application system while they are in Australia.

Superannuation is one of those areas that can be compared to a cart on a rollercoaster. Its performance is constantly affected by economic climate and shifting legislation that alter the benefits individuals and businesses can gain from superannuation funds. There are a lot of advantages available to you and your business. And, we are here to assist you in finding out what those are. Please don’t hesitate to contact us if you would like to know more or read more here.

Leave a Reply

Your email address will not be published. Required fields are marked *