Employers will be aware that the Superannuation Guarantee (SG) employer contribution rate will be increased from 10% to 10.5% on 1 July 2022.
The obligation is no different for employers who happen to sponsor primary Subclass 482 visa holders but may present a trap for such employer-sponsors where their employees are paid on a Total Fixed Remuneration basis (as opposed to base + superannuation basis).
Specifically, if there is a net reduction in the Guaranteed Annual Earnings of the sponsored employee from the figure presented in the person’s most recent (‘TSS’) nomination application, then a new nomination will be required to be submitted.
By way of example: If your expatriate employee was nominated in a position with a base salary of $100,000 plus super, they would currently receive $110,000 inclusive of super increasing to $110,500 from 1 July 2022. There would be no reduction in Guaranteed Annual Earnings (by definition ‘Earnings’ excludes superannuation for present purposes), and this scenario poses no issue under the TSS rules.
However, where your primary sponsored TSS visa holder is currently paid under a Total Fixed Remuneration package of $110,000 (inclusive of super), the visa holder’s earnings in the above scenario would be reduced to $99,547 from 1 July 2022, and this would trigger the requirement for the sponsor to submit another TSS nomination application at the reduced salary.
A new nomination may not be necessary where the primary sponsored visa holder has had intervening salary increases taking them above the earnings identified in the most recent nomination application, or where an employer elects to absorb the cost of the additional super contribution despite the terms of the fixed remuneration contract indicating otherwise.
Please reach out to the Longton Legal Immigration team for more information.
*Disclaimer: This is intended as general information only and not to be construed as legal advice. The above information is subject to changes over time. You should always seek professional advice beforetaking any course of action.*
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