Advice on paying super to backpackers

Backpackers form a large part of Australia’s seasonal workforce, particularly in the agricultural sector. Considered temporary residents, backpackers are entitled to superannuation guarantee if they are paid $450 or more before tax in a calendar month. Once the individual leaves Australia, they can then claim the super paid to them as a Departing Australia superannuation payment providing all requirements are met.

To keep compliant with regulations the ATO have published a guide for employers who employ backpackers:

• check they hold a valid visa using the Visa Entitlement Verification Online (VEVO) service
• use our 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 you would any other worker before they start working for you
• advise them that they can start their DASP application using our free online application system while they are in Australia
• provide them with a Payment summary when they finish working for you.

 

For more information, please visit the ATO website here

Date published 30 Apr 2019

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.