If you have employees who are temporary residents, including 457 visa holders, it’s important to be aware that for them, the treatment of super may differ to that of Australian residents.
Employees who hold a 457 visa may be able to:
- work in Australia for an approved sponsor for the life of their visa (which could be up to four years)
- bring their family to work or study in Australia
- travel in and out of Australia as often as they want1.
Temporary residents and eligibility for super
Broadly, every Australian employer is required by law to pay 9.5% into a super account on each eligible employee’s behalf. Temporary residents may also be eligible to benefit from this – although there are a few exceptions.
For example, this requirement may depend on the type of visa they hold and the type of job the employee performs in Australia. Also, Australia has an agreement with some countries, which could mean residents of those countries do not receive super when working in Australia.
What happens when the employee leaves Australia?
When temporary residents leave Australia, any super money they have will be treated differently to that of Australian residents.
For example, they may be eligible to apply for a departing-Australia superannuation payment, but they’ll need to check with the Australian Taxation Office (ATO) about how the laws will apply to them and any fees or tax implications.
Your employees in this situation can visit the ATO’s webpage that provides information about superannuation for temporary residents departing Australia.
If your employees would like more information on their personal situation, they can to speak to their financial adviser. If they don’t have an adviser they can use our online tool or call us on 131 267 and we can put them in touch with one.