Australia: Increase in Superannuation Guarantee Rates Affecting Certain Visa Holders Imposed
July 7, 2022
The Australian government has increased the Superannuation Guarantee (SG) percentage rate to 10.5%, up from 10%, and will further increase the rate in increments of 0.5% on July 1 of the next three years. The SG dictates the minimum percentage of earnings that an employer must pay into a superannuation fund and is a compulsory employer contribution. This percentage is set and indexed by the Australian government. Packaged employees, who are subject to a salary package inclusive of superannuation, including any Temporary Skills Shortage (TSS), Subclass 457 and Subclass 494 visa holders whose employment contract specifies that their salary includes superannuation, will generally see their base salary decrease by the amount the SG was increased. Employers must ensure compliance with requisite immigration obligations by adjusting their affected sponsored visa holders’ base salary to ensure that they continue to be paid their approved Guaranteed Annual Earnings (as required for TSS, Subclass 457 and Subclass 494 visa holders) or by applying for new TSS nominations to rectify decreased earnings for sponsored visa holders.
This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].
Explore more at Fragomen
Podcast
Associates Stephanie D. Weaver and Julia Manacher examine immigration issues emerging in a popular reality television series, including K-1 visa denials, consular non-reviewability, fraud findings and changing adjudication policies.
Blog post
Manager Dr. Adela Schmidt examines common misconceptions in German citizenship law, including birthright citizenship, dual citizenship, citizenship by descent and naturalization processing, and explains why eligibility often depends on specific legal requirements, timelines and documentation.
Awards
Partner Audrea Golding, Senior Associate Kyle Sommer and Senior Talent Development Director Wendy Milici have been named finalists in the 2026 TLC Lions Human Awards Americas, recognizing their contributions to human-centered leadership, workplace culture and inclusion.
Media mentions
Fragomen and SICPA have launched a global joint venture to develop an end-to-end digital identity platform that enables secure identity verification, document authentication and verifiable credential management.
Media mentions
Senior Counsel Mitch Wexler discusses how potential changes to H-1B visas, employment-based green cards and OPT could impact employers’ workforce planning and compliance obligations.
Media mentions
In a Leaders in Motion interview with World Business Travel Forum, Partner Ali Haider and Nomadic CEO Carsten Østberg discuss recent travel and mobility developments across the Middle East and practical considerations for employers managing cross-border talent in the region.
Media mentions
Partner Rachel Beardsley explains how new DHS guidance clarifies that dairy employers may use the H-2A program when they can demonstrate a temporary or seasonal labor need.
Fragomen news
Fragomen and SICPA announced the formation of a global joint venture to advance next-generation digital identity solutions for governments, enterprises and individuals.
Blog post
Senior Associate Kyle Sommer and Adam Schwartz, Director in the Global Mobility practice at Andersen, discuss how immigration and tax considerations intersect across common US immigration classifications and why early coordination can help travelers, employers and advisors reduce compliance risks and make more informed mobility decisions.
Podcast
In this episode of The Immigration Conversation, Senior Associates Sarah Melnick and Kimberly Elmazi discuss key considerations for foreign nationals planning international summer travel, including visa appointment planning, document preparation, consular interviews, port-of-entry procedures and I-94 review.
Podcast
UK Government Affairs Strategy Director Shuyeb Muquit is joined by Jonathan Thomas of the Social Market Foundation, Dr. Ben Brindle of the Migration Observatory, University of Oxford and Steve McCauley of the University of Cambridge to discuss what a new UK Prime Minister could mean for immigration policy, employers and workforce mobility.
Podcast
Associates Stephanie D. Weaver and Julia Manacher examine immigration issues emerging in a popular reality television series, including K-1 visa denials, consular non-reviewability, fraud findings and changing adjudication policies.
Blog post
Manager Dr. Adela Schmidt examines common misconceptions in German citizenship law, including birthright citizenship, dual citizenship, citizenship by descent and naturalization processing, and explains why eligibility often depends on specific legal requirements, timelines and documentation.
Awards
Partner Audrea Golding, Senior Associate Kyle Sommer and Senior Talent Development Director Wendy Milici have been named finalists in the 2026 TLC Lions Human Awards Americas, recognizing their contributions to human-centered leadership, workplace culture and inclusion.
Media mentions
Fragomen and SICPA have launched a global joint venture to develop an end-to-end digital identity platform that enables secure identity verification, document authentication and verifiable credential management.
Media mentions
Senior Counsel Mitch Wexler discusses how potential changes to H-1B visas, employment-based green cards and OPT could impact employers’ workforce planning and compliance obligations.
Media mentions
In a Leaders in Motion interview with World Business Travel Forum, Partner Ali Haider and Nomadic CEO Carsten Østberg discuss recent travel and mobility developments across the Middle East and practical considerations for employers managing cross-border talent in the region.
Media mentions
Partner Rachel Beardsley explains how new DHS guidance clarifies that dairy employers may use the H-2A program when they can demonstrate a temporary or seasonal labor need.
Fragomen news
Fragomen and SICPA announced the formation of a global joint venture to advance next-generation digital identity solutions for governments, enterprises and individuals.
Blog post
Senior Associate Kyle Sommer and Adam Schwartz, Director in the Global Mobility practice at Andersen, discuss how immigration and tax considerations intersect across common US immigration classifications and why early coordination can help travelers, employers and advisors reduce compliance risks and make more informed mobility decisions.
Podcast
In this episode of The Immigration Conversation, Senior Associates Sarah Melnick and Kimberly Elmazi discuss key considerations for foreign nationals planning international summer travel, including visa appointment planning, document preparation, consular interviews, port-of-entry procedures and I-94 review.
Podcast
UK Government Affairs Strategy Director Shuyeb Muquit is joined by Jonathan Thomas of the Social Market Foundation, Dr. Ben Brindle of the Migration Observatory, University of Oxford and Steve McCauley of the University of Cambridge to discuss what a new UK Prime Minister could mean for immigration policy, employers and workforce mobility.
