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

By Terry Murphy CPA
Last updated April 2019