Subclass 457 Visa Compliance: Compulsory Retirement Contribution Rate Increases on July 1
May 21, 2014
Australia’s compulsory employer superannuation contribution rate – the amount employers are required to contribute toward employee retirement funds – will increase 0.25 percent to 9.5 percent on July 1, 2014 as part of a program of increases designed to raise the rate to 12 percent by 2020. This superannuation rate last increased, by 0.25 percent, on July 1, 2013.
Employers who choose to reduce the salary component of the total salary package of a foreign national rather than increase the package by 0.25 percent (providing this is permitted under the employment contract) will need to notify Department of Immigration and Border Protection of the change. Before making any decision to reduce the salary component, an employer must ensure that the adjusted salary will continue to satisfy the market rate requirement.
What This Means for Employers
Employers should develop strategies for how they will account for increases in superannuation contribution rates. Employers should also review their subclass 457 visa holders’ contracts of employment to determine whether the contracts permit them to adjust employees' salaries to account for higher superannuation rates. Employees will need to be notified of the change in superannuation rates and how it will impact them.
Employers that take on the expense of additional superannuation payments will not be required to take any action. A new subclass 457 nomination will only be required if the salary component of the salary package is reduced to accommodate for the increase in superannuation contribution rate.
How Fragomen Can Assist
Fragomen can assist clients with evaluating salary levels for compliance with immigration requirements. Fragomen also assists companies with preparing and filing subclass 457 nominations to notify the Department of Immigration and Border Protection of any downward changes in foreign workers salary.
This alert is for information purposes only. If you have any questions, please do not hesitate to contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].
MARN 9896488
© 2009 - 2015 © Fragomen, Del Rey, Bernsen & Loewy, LLP, Fragomen Global LLP and affiliates. All Rights Reserved.
Explore more at Fragomen
Media mentions
Senior Manager Samantha Arnold examines the remaining opportunities under Ireland’s winding-down Immigrant Investor Programme and what they mean for eligible investors and their families.
Blog post
Government Affairs Strategy Director Shuyeb Muquit analyses the UK’s latest net migration decline, exploring what the data reveals about policy impact, economic trade‑offs and the risks of over‑correction in future migration strategy.
Media mentions
Partner Bo Cooper discusses the practical considerations facing employers and foreign nationals amid recent changes to green card processing.
Blog post
Video
In this #FragomenFC episode, Partner Rick Lamanna, Senior Manager Sergio Flores and Senior Associate Jake Paul Minster discuss final travel and immigration considerations ahead of the 2026 FIFA World Cup.
Media mentions
Senior Manager Samantha Arnold discusses Ireland's citizenship framework and the gaps that can remain following reforms to birthright citizenship.
Video
In this video, Partner Diana Quintas discusses how Brazil’s family reunion visa supports long-term international assignments and outlines key eligibility, documentation and compliance considerations for employers and families relocating to Brazil.
Blog post
Attorney María José Clarke explores Chile’s intensified immigration enforcement framework under President José Antonio Kast, examining new employer compliance obligations, work authorization rules for foreign nationals and the legal and financial consequences of unauthorized employment.
Media mentions
Senior Manager Jonathan Hill examines how the UK's new RAG rating system and stricter compliance metrics could shape universities' approaches to international student recruitment and sponsorship compliance.
Blog post
Knowledge Management Director Ana Sofia Walsh and Senior Client Engagement Manager Soraya Driessen examine the European Commission’s EU Inc. proposal and its potential to reshape corporate structures across the EU, highlighting the resulting complexities and unresolved questions for immigration, work authorization and cross-border workforce mobility.
Video
With less than two weeks until the first match of the 2026 FIFA World Cup, Senior Associate Jake Paul Minster outlines important visa and entry considerations for travelers planning to visit the US, Canada and Mexico.
Media mentions
Partner Ali Haider discussed how flexible residency pathways, strong infrastructure and access to healthcare are continuing to drive interest among retirees looking to relocate to the UAE.
Media mentions
Senior Manager Samantha Arnold examines the remaining opportunities under Ireland’s winding-down Immigrant Investor Programme and what they mean for eligible investors and their families.
Blog post
Government Affairs Strategy Director Shuyeb Muquit analyses the UK’s latest net migration decline, exploring what the data reveals about policy impact, economic trade‑offs and the risks of over‑correction in future migration strategy.
Media mentions
Partner Bo Cooper discusses the practical considerations facing employers and foreign nationals amid recent changes to green card processing.
Blog post
Video
In this #FragomenFC episode, Partner Rick Lamanna, Senior Manager Sergio Flores and Senior Associate Jake Paul Minster discuss final travel and immigration considerations ahead of the 2026 FIFA World Cup.
Media mentions
Senior Manager Samantha Arnold discusses Ireland's citizenship framework and the gaps that can remain following reforms to birthright citizenship.
Video
In this video, Partner Diana Quintas discusses how Brazil’s family reunion visa supports long-term international assignments and outlines key eligibility, documentation and compliance considerations for employers and families relocating to Brazil.
Blog post
Attorney María José Clarke explores Chile’s intensified immigration enforcement framework under President José Antonio Kast, examining new employer compliance obligations, work authorization rules for foreign nationals and the legal and financial consequences of unauthorized employment.
Media mentions
Senior Manager Jonathan Hill examines how the UK's new RAG rating system and stricter compliance metrics could shape universities' approaches to international student recruitment and sponsorship compliance.
Blog post
Knowledge Management Director Ana Sofia Walsh and Senior Client Engagement Manager Soraya Driessen examine the European Commission’s EU Inc. proposal and its potential to reshape corporate structures across the EU, highlighting the resulting complexities and unresolved questions for immigration, work authorization and cross-border workforce mobility.
Video
With less than two weeks until the first match of the 2026 FIFA World Cup, Senior Associate Jake Paul Minster outlines important visa and entry considerations for travelers planning to visit the US, Canada and Mexico.
Media mentions
Partner Ali Haider discussed how flexible residency pathways, strong infrastructure and access to healthcare are continuing to drive interest among retirees looking to relocate to the UAE.
