Top 5 Things You Didn't Know You Were Getting Wrong

The best bit about winter in Melbourne as a Global Mobility professional is Katie Leliard 's Global Mobility Forum. She brings together thought leaders from a diverse range of sources to present and mingle with the community of professionals serving expats and employers across the industry.

I was pretty chuffed to discover our two KPMG roundtable sessions were sold out!

My Mobility Matters newsletter is all about sharing insights and the June edition is no different. A short one to show you a few of the matters you might need to reconsider as they are easily overlooked but could make a big impact.

1) Certificates of Coverage

These are often the currency that keep assignees from loosing out on the valuable accumulation of retirement savings in one country despite globe trotting around the world.

We are fast approaching 1 July when it's likely the level of pay has increased.

Do you have a failure proof method for ensuring that changes in remuneration are communicated back to the home country payroll?

Underpaying superannuation contributions is far from ideal. Let me know if you need a system for ensuring this is managed properly for your global program.

2) FX rates and the impact on 482 visas

Maria Hrambanis joined me to present on the day and shared the importance of paying your visa holders above the minimum required salary and at least what is included in their nomination approval.

This seems like an obvious one but our VUCA (volatile, uncertain, complex and ambiguous) world is never short of an obvious issue that trips a well meaning rule abiding player up.

Don't let the fluctuating FX rate for a foreign denominated contract create a sponsorship obligation breach in Australia!

3) Employee Share Scheme reporting and Payroll Tax

Did you know that my team also does Employee Share Scheme reporting here in Australia? We can also assist with global plans because of the software KPMG Global Mobility Services have been investing in for years so we remain in a position to best serve our clients.

Our local technology enables us to give our clients a report to show the payroll tax position for the taxable awards in the year.

Did you know you have a a choice for when you pay tax?

Are you familiar with the option to pay payroll tax at grant or vest?

Hit me up for more details!

4) VEVO checks

I'm always shocked when Caroline Hickson demos our immigration technology solution to the market and she asks how frequently companies are doing VEVO checks. Too often the answer is never past the point of recruitment!

This tip applies to your expats and international hires. Heck even a local hire who isn't a citizen requires that you keep an eye on the validity of their visa while you are employing them.

If you don't want another manual process in your To-Do List reach out for a demo of our tech tool!

5) Superannuation and Temporary Residents

This one is very technical but Emma Finch presented the topic with grace and ease.

Essentially there is a additional tax (Div 293) that applies to superannuation contributions of anyone earning over a certain threshold ($250,000). If you are an expat and eventually subject to the Departing Australia Superannuation Payment (DASP) which is a 35% tax on your superannuation balance once your visa has been cancelled and you can no longer work in the country.

You would be aware that there is a 15% contributions tax on superannuation as well.

You do the maths.... if you paid all of these it would be a lot... too much. So the government allows you to get the Div 293 back through a process but you can't do it after the point that you have already paid your DASP as that is a final tax and the gig is over at that stage.

If you are managing a global program with highly remunerated expats where this high tax situation could occur apply seek help.

It's always good to bump into old friends and colleagues at the forum as well. If I missed you on the day but you are keen for a catch up let me know! I'm always up for a hot cup of tea on a cool winter's afternoon in the CBD.

What would you add as the next best thing professionals are missing?

American by birth, Australian by choice. Ursula Lepporoli has lived expat experience. She brings compassion and understanding to the tax and policy expertise she provides to assignees and employers. Sharing knowledge with the wider mobility community brings her joy. With 18 years of Global Mobility experience she brings a strategic and practical perspective to every interaction. She prides herself on making tax fun but takes the responsibility of cutting through complexity seriously.?Follow her, and subscribe to the Mobility Matters newsletter here.

The views expressed above are mine alone and are not tax advice.