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Changes to salary sacrificing super for SG from 1 January

From 1 January 2020, salary sacrificed super contributions cannot be used to reduce super guarantee obligations for the employer, regardless of the amount the employee elects to salary sacrifice.

This means the salary sacrificed amount does not count towards the employe's super guarantee (SG) obligations.

A further change is that the super guarantee will be 9.5% of the employee's ordinary time earnings (OTE) 'base'. The base is the sum of:

  • the employee's OTE

  • the amount salary sacrificed from the employee's OTE.

You need to:

  • review your salary sacrifice arrangements to make sure you are:

  • using your employee's OTE base to calculate your SG obligation

  • not counting salary sacrificed amounts towards the minimum amount of SG you have to pay

  • check that all your systems correctly calculate your SG obligations.

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