Super guarantee opt-out for high income earners now law
From 1 January 2020, eligible individuals with multiple employers can apply to opt out of receiving super guarantee ('SG') from some of their employers, to help them avoid unintentionally going over the concessional contributions cap.
If appropriate for them, you should submit the relevant ATO form to apply for an SG employers shortfall exemption certificate, which releases one or more of their employers from their SG obligations for up to four quarters in one financial year.
This measure may not benefit everyone who is eligible, so before you lodge the form, it is important to consider your employment arrangements, such as how your pay and other entitlements may change (if at all), and the effect of any relevant award or workplace agreement that is applicable to you.
The measure only became law on 2 October 2019, so to give eligible employees time to make an application, the ATO will accept applications for the 2019/20 year as follows:
- third quarter commencing 1 January 2020 - lodge on or before 18 November 2019; and
- fourth quarter commencing 1 April 2020 - lodge on or before 31 January 2020
A separate application is required for each financial year.
The Money Edge | Bundaberg