# 401k, Super....confused



## bssharpie (May 7, 2012)

Hello All,

Recent 457 arrival to oz here, been about 4 months now.

So far everything has gone rather well getting settled into the job, finding a place etc.

Though now I am a bit confused about the superannuation funds....

While here, I am still on our US payroll. I still get payed into my US bank, with the usual deductions for insurance, taxes etc, including my 401K.

I noticed that my assignment letter doesn't say anything about a superannuation fund for me. Its my impression that it is required by law that employers provide this for all employees, including non-residents.

Am I missing something here or should I be receiving a super contribution? Or am I somehow excempt because I receive a 401k?

Would really appreciate any input here, particularly from some tax gurus.

thanks


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## robnw (Jul 18, 2012)

You have here two countries trying to apply tax on the same worldwide income.
"Employers have the same obligations to make superannuation contributions for 457 
holders’ as they do for Australian workers. Superannuation contributions cannot be 
deducted from 457 workers’ salary, and must be passed on to a superannuation 
scheme. 457 workers have the same right to choose their own superannuation fund 
as Australian workers. " - Aus Council of Trade Unions.
For taxation of the Aus super by the USA, and taxation of the US 401k by the Australians, see the Aus / USA Double Tax Treaty.
For Aus taxation of your employed income see 'Living Away From Home' allowance.
Living-away-from-home allowance fringe benefits
For US taxation of your employed income see Foreign Earnings Exclusion if you will qualify. 
I would not expect any person in this situation to be able to figure out compliance and least tax on earned income, investment income and pensions in their spare time: if you need a recommendation US/Aus tax person send me a message.


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