By Sasko Markovski
It is common for many employers to provide staff with the
opportunity to enter into salary packaging arrangements which can
provide benefits to maximise any available tax concessions.
Where the staff member is on a subclass 457 visa, or another
applicable temporary visa, it is important for employers to
understand how DIAC looks at these types of benefits both at the
time an application is submitted and thereafter as part of the
ongoing sponsorship obligations of the employer.
At the time an employer nominates an overseas worker for a
subclass 457 visa, information about the base salary and total
earnings of the individual needs to be provided. Total earnings
calculations can include wages, the amounts applied or dealt on the
employees behalf (for example allowances, additional superannuation
contributions), and the agreed money value of non-monetary benefits
(for example annual health insurance premiums).
