From 1 January 2020, salary sacrificed super contributions will no longer be considered part of super guarantee (SG) contributions from employers.
Prior to 1 January 2020, you could use salary sacrificed super contributions to reduce both the earnings amount your employee’s super guarantee entitlement is calculated on as well as satisfying all or part of the compulsory super guarantee contributions you were required to pay.
Post 1 January 2020, salary sacrificed contributions will no longer be considered super guarantee contributions from employers. For example, if an employee elects to salary sacrifice 5% into their super, their employer will still be required to pay 9.5% or more of your ordinary time earnings base, including the salary sacrifice amount, into their super to avoid the super guarantee charge.
Reporting requirements have also changed. If you make super contributions under a salary-sacrifice arrangement or make extra super contributions to a super fund for an employee, you may need to report those contributions on your employee's payment summary.
Find out more from the ATO here, or contact our Employer Relations team with any questions on 1300 118 632 or email them at employers@aware.com.au
