beckett

Hello
I'm based in Sydney and work remotely for a UK company. I do my work online and don't have any contact with the Australian market. I am an employee (rather than a self employed contractor). My UK employer does not contribute to any Australian superannuation plan for me nor any UK pension scheme. As a result I have set up my own Australian superannuation fund to which I make personal contributions. Problem is the ATO now says that it won't allow me to make any deduction in respect of my personal superannuation contributions to my superannuation fund.

Anyone in the same position?

Is a non-Australian resident employer still bound by the Superannuation Guarantee and if so, how could the ATO enforce it against a non-resident employer?

I don't want my employer to have make compulsory super contributions for me as I'm quite happy with the arrangement with my employer and don't want to cause any complications for them - I just want to be able to have some form of deduction for the personal contributions I make to my super.

Anyone have any words of wisdom of this.

thanks

Fardell

Can't offer much advice but to suggest that you see a tax advisor - it's probably too complicated to leave to this forum. I'm having a little difficulty understanding though why you wish to remain an employee of a British firm if they are making no pension contributions in the UK, or Australia - unless you intend to return to the UK, you are accruing redundancy benefits or you simply don't want to upset an arrangemnt.

Sometimes the "easiest" arrangements - remaining an employee rather than becoming a self employed contractor or establishing a company - aren't the best in the long term. Best not to become embroiled too much in Australia's tax law - it makes the UK look transparent and comfy.

beckett

Thanks Fardell.

I really want to remain an employee for job security and also for the maternity leave package and other perks that the UK company offers me.

Fardell

OK, that's entirely understandable, it's just that I see a few complication ahead. Since your employer is offshore I also can't see how they would be compelled to make super contributions, but it can't be that simple ... otherwise we would have offshore employers all over the place. Will do a little investigating to see about the implications.

Cheers

GinaUK

Hi Beckett,

as Fardell said: best to contact a tax advisor. One suggestion is to contact "Alan Collett", who also writes on this forum. You can check him out via his website: http://www.collettandco.com

Gina