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Edited version of administratively binding advice
Authorisation Number: 1012485518394
Advice
Subject: Superannuation Guarantee
Is the partnership which is registered for GST and PAYG withholding, liable for superannuation guarantee on salary paid to an employee, who is a non- resident of Australia for income tax purposes?
No
Detailed reasoning
SUPERANNUATION GUARANTEE (ADMINISTRATION) ACT 1992 (SGAA) - SECT 27
Subsection 27(1) of the SGAA states the following salary or wages are not to be taken into account for the purpose of making a calculation under section 19 of the SGAA.
(1) The following salary or wages are not to be taken into account for the purpose of making a calculation under section 19:
(a) salary or wages paid to an employee who is 70 or over;
(b) salary or wages paid to an employee who is not a resident of Australia for work done outside Australia (except to the extent that the salary or wages relate to employment covered by a certificate under section 15C);
(c) salary or wages paid by an employer who is not a resident of Australia to an employee who is a resident of Australia for work done outside Australia;
(ca) salary or wages paid by an employer to an employee who is not a resident of Australia for work done in the Joint Petroleum Development Area (within the meaning of the Petroleum (Timor Sea Treaty) Act 2003 );
(d) salary or wages paid to an employee who is a prescribed employee for the purposes of this paragraph;
(e)salary or wages prescribed for the purposes of this paragraph.
(2) If an employer pays an employee less than $450 by way of salary or wages in a calendar month, the salary or wages so paid are not to be taken into account for the purpose of making a calculation, in relation to the employer and the employee, under section 19.
The partnership is not liable for superannuation guarantee on salary paid to an employee, who is not a resident of Australia for income tax purposes as stated in section 27 (b) above.
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