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Edited version of private advice

Authorisation Number: 1051808019804

Date of advice: 22 February 2021


Subject: Superannuation


Does the Company have an obligation to pay superannuation guarantee on any ordinary time earnings earned by the taxpayer while they performed services for a Government department in another country?



This advice applies for the following period:

Financial year ending 30 June 20XX

The arrangement commences on:

1 July 20XX

Relevant facts and circumstances

The Company is an Australian incorporated company.

The Company has an employment relationship with a taxpayer who is going to work overseas.

The Company is entering into an employment contract with a Government department located in another country.

The taxpayer's contract was obtained through an exchange program

The Company will invoice the Government department for services performed by the taxpayer.

All salary and employer-paid benefits will be paid to the taxpayer by the Company.

The employee is considered an Australian Resident for tax purposes while overseas.

The employee left Australia in February 20XX to commence work and establish a home overseas.

The employee and her family returned to Australia in early April 20XX due to the worldwide crisis.

The Company will establish an overseas bank account for business income and expenses.

The company will not be doing any other business during the contract period.

All business will be conducted outside Australia.

The taxpayer is physically required to be overseas to perform their work and is intending to relocate once the worldwide crisis is over.

Relevant legislative provisions

Superannuation Guarantee Administration Act 1992

Reasons for decision

The Superannuation Guarantee Administration Act 1992 (SGAA) requires that an employer must provide the required minimum level of superannuation support for its employees (unless the employees are exempt employees) or pay the Superannuation Guarantee Charge (SGC).

As an Australian entity (XXXX), you have superannuation obligations for Australian employees who are working overseas, but only if they are considered residents of Australia for tax purposes.

The employee of the company is a resident of Australia for taxation purposes while working overseas. This being the case, your superannuation obligations to your employee, remain the same.