05 February 2016 New definition of 'Australia' for purposes of Superannuation Guarantee may affect obligations for foreign offshore workers The definition of "Australia" for Superannuation Guarantee (SG) purposes will generally extend to up to 200 nautical miles from Australia's territorial sea baseline. This follows a change in law which took effect on July 1, 2015. The ATO's initial decision did not make it clear that there was a change in position. The ATO has now confirmed the effect of these changes. Unfortunately this may have an unanticipated effect on a number of employers with foreign employees working in offshore areas. This will require reassessment of the position for foreign employees working beyond the former limit of 12 nautical miles. A Tax Alert prepared by Ernst & Young's Human Capital Group, and attached below, provides additional details. Document ID: 2016-0256 |
