New super guarantee exemptions for high income earners available from 1 January
Starting from the beginning of next year, high income earners with multiple employers can opt out of super guarantee.
According to a new information sheet issued by the Australian Taxation Office (ATO), eligible individuals with multiple employers can apply to opt out of receiving super guarantee (SG) from some of their employers from 1 January 2020.
To be eligible for the SG opt out, you must have more than one employer or expect your employers' mandated concessional super contributions to exceed your concessional contributions cap for a financial year.
The ATO is advising eligible individuals to submit the “SG opt out for high income earner with multiple employers” form to apply for an SG employer shortfall exemption certificate.
“The certificate releases one or more of your employers from their SG obligations for up to four quarters in one financial year,” the ATO said.
However, it reminded interested individuals that they will still need to receive SG contributions from at least one of their employers for each of those quarters.
“The exemption certificate means the employer will not be liable for the super guarantee charge (SGC) if they don't make SG contributions on your behalf for the quarters covered by the certificate,” the Tax Office said.
“It is important to talk to your employer before applying as they can choose to disregard an exemption certificate and continue to make SG contributions.”
To give eligible employees time to make an application following the commencement of this measure, the ATO will accept applications for the 2019-20 financial year as follows:
- third quarter commencing 1 January 2020 – lodge on or before 18 November 2019;
- fourth quarter commencing 1 April 2020 – lodge on or before 31 January 2020.
An exemption certificate can be for a period of up to four quarters in one financial year, with a separate application required for each financial year.
The Tax Office warned that this measure may not benefit everyone who is eligible, and advised individuals to consider their employment arrangements.
An accountant or tax agent may also be able to provide advice.