Private ruling: Superannuation Guarantee
Published: July 2013

Ruling: 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.