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PAYG Witholding For South African Company with an Australian Employee

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Newbie

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Dear ATO

 

We are a South African company whose employee has decided to relocate to Aus. He is a work from home employee that does research for us. He will be premanently resident in Aus for tax purposes. As a company with no presence in Aus, will we be required to register for PAYG and Super? What will the employee need to register for?

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Former Community Support

Replies 0

Hi @Jasoken,

 

Thanks for following up. Your obligations under Australian tax law depend on your worker's situation - if they become an Australian resident for tax purposes (which is very different to residency for immigration or social security purposes) then you will need to register for certain tax roles in Australia.

 

You may also need to contact other Australian government agencies like the Fair Work Ombudsman to find out if you have additional registration requirements.

 

Thanks.

3 REPLIES 3

Former Community Support

Replies 2

Hi @Jasoken,

 

Thanks for your post! If you employ a full-time, part-time or casual worker in Australia, or you employ a contractor wholly or principally for labour, you may have employer obligations for:

  • superannuation – generally, employers must contribute to the retirement savings of their Australian workers
  • pay as you go (PAYG) withholding – if your worker is an employee, you generally have to withhold amounts from payments you make to them and send the withheld amount to us.

You will need to register for an Australian Business Number (or ABN) for pay as you go (PAYG) withholding purposes. You can learn more about international tax for businesses over on our website.

 

We also have a guide on coming to Australia that may be of interest for your employee - it outlines how tax works in Australia, how to apply for a tax file number and their reporting obligations.

 

Thanks

 

 

Newbie

Replies 1

Hi

 

Thank for the response. Will the fact I'm actually not employing in Australia, but rather allowing a current South African  employee from South Africa to work remotley in Australia make any difference to the registration requirments?

 

Kind regards

Most helpful response

Former Community Support

Replies 0

Hi @Jasoken,

 

Thanks for following up. Your obligations under Australian tax law depend on your worker's situation - if they become an Australian resident for tax purposes (which is very different to residency for immigration or social security purposes) then you will need to register for certain tax roles in Australia.

 

You may also need to contact other Australian government agencies like the Fair Work Ombudsman to find out if you have additional registration requirements.

 

Thanks.