Super for foreign and temporary-resident employees¶

Many workers in Australia are here on a temporary visa. If they are eligible employees, you generally pay their super just like anyone else. Being a foreign national or a temporary resident does not, by itself, change the super rules.

There is one special case to be aware of. A worker sent to Australia by an overseas employer may be covered by an agreement between the two countries, and that can affect whether super is due.

In one line

Temporary residents generally get super like other employees; on leaving they may claim a departing Australia super payment — and some seconded workers may be exempt under a bilateral agreement.

Why this matters¶

If you employ people from overseas, you need to know that most of them are entitled to super in the normal way. You also need to know that a small group — workers seconded here by an overseas employer — may be treated differently. Getting either point wrong can mean paying super you did not need to, or missing super you owed.

What you will learn¶

That temporary residents generally get super like other employees
How the worker claims their super after leaving Australia
When a bilateral agreement may exempt a seconded worker from super

Understanding the concept¶

The general rule is straightforward. The ATO says a temporary resident working in Australia who is eligible for super has it paid by their employer under the normal super guarantee rules. You work it out and pay it the same way you would for a local worker.

When a temporary resident leaves Australia and their visa has ended, they can claim their super as a departing Australia superannuation payment, or DASP. The ATO explains that the super they built up here can be paid to them, less tax, after they go. The worker claims this themselves from the ATO and their fund — the employer does not.

The special case is about workers sent here from overseas. The ATO explains that Australia has bilateral social security agreements with some countries. These agreements deal with "double super coverage" — where a worker seconded to another country could otherwise have super paid in both countries. Under such an agreement, the overseas employer can apply to the ATO for a certificate of coverage, which can exempt them from paying super in Australia for that seconded worker.

This area depends on the specific country, the agreement and the worker's situation. Treat it as a flag to check, not a rule to apply on your own. Point to the ATO for the detail.

For accountants & bookkeepers

A certificate of coverage exempts an employer from paying super (or the overseas equivalent) in the other country for a seconded worker, so contributions are only made in the worker's home system. Which countries have agreements, and the conditions that apply, are set out by the ATO — confirm the current list and the worker's eligibility before relying on an exemption. Outside these agreement cases, the normal super guarantee rules apply to temporary residents.

Example¶

Marco is seconded to Australia for two years by his employer in a country that has a bilateral social security agreement with Australia. His employer applies to the ATO for a certificate of coverage. With the certificate in place, the employer does not have to pay super for Marco in Australia, because he stays covered by his home country's system.

By contrast, a different temporary resident hired locally with no such agreement would have super paid in the normal way, and could claim a DASP after leaving Australia. Marco's case is the exception — most foreign workers fall under the general rule.

Common mistakes¶

Assuming foreign or temporary-resident workers never get super — most eligible ones do.
Applying a bilateral-agreement exemption without a certificate of coverage from the ATO.
Thinking the employer handles the DASP — the worker claims it from the ATO after leaving.

How this works in myaccountant¶

In the app — for eligible temporary-resident employees, myaccountant works out and pays their super the same as any other eligible worker, and holds their fund details. The departing Australia superannuation payment is claimed by the worker directly with the ATO and their fund after they leave. Bilateral-agreement exemptions and certificates of coverage are handled with the ATO, not through myaccountant.

Key points¶

Temporary residents who are eligible employees generally get super like anyone else.
The employer pays their super in the normal way.
On leaving Australia, the worker can claim their super as a DASP.
A bilateral social security agreement may exempt some seconded workers from super.
That exemption needs a certificate of coverage from the ATO.
Check the ATO for which countries have agreements and how they apply.

Learn next¶

General information only — not tax, super or financial advice.

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