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IMPACT – MEDIUM
The Australian government increased the mandatory superannuation payment percentage for employees from 10% to 10.5% on July 1.
Key Points:
BAL Analysis: A drop in an employees’ annual earnings from an approved 457 or 482 nomination means that a business may be breaking its sponsorship obligations required by law. This kind of breach in obligation has the potential to affect a business’ ability to sponsor foreign nationals in the future, and responsible parties may face financial and/or criminal penalties. Sponsors should ensure that any change to superannuation does not decrease the payments to sponsored visa holders below the level stipulated in the nomination. If unsure, sponsors are encouraged to consult their immigration provider before lowering annual earnings.
This alert has been provided by the BAL Global Practice group. For additional information, please contact berryapplemanleiden@bal.com.
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