The ATO has reminded businesses that employ backpackers that they may need to pay superannuation guarantee (SG) for them.
Backpackers on working holidays are considered temporary residents, and are entitled to superannuation guarantee (SG) if they are paid $450 or more before tax in a calendar month. Once they leave Australia, they can claim the super paid to them as a Departing Australia superannuation payment (DASP) providing all requirements are met.
The ATO says those who employ 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 they would for any other worker before they start working for them;
- advise them that they can start their DASP application using the ATO's free online application system while they are in Australia.