The superannuation guarantee’s interaction with salary sacrificed contributions

Hayley Lock and David Sofra look at a bill that would address some potential anomalies in the rules governing employers’ superannuation contribution obligations.

Measures included in Treasury Laws Amendment (2019 Tax Integrity and Other Measures No. 1) Bill 2019, would ensure that salary-sacrificed contributions to an employee’s superannuation fund:Would not reduce the ordinary time earnings (OTE) amount, in respect of which an employer should make superannuation contributions; andWould not count in assessing whether an employer had a superannuation shortfall in respect of a particular employee.Many employees’ remuneration is set on a total remunerati...

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Authors: Hayley Lock, David Sofrà

Published Date: 06 August 2019