As part of the recent Federal Budget, the Government announced that eligible employees would be able to choose to nominate that their wages from certain employers not be subject to the superannuation guarantee (SG) rules from 1 July 2018.
The rationale for the introduction of this change is that where a high income earner has multiple employers they may end up breaching their annual concessional contribution cap if each of the employers complies with their SG obligations. The change allows high income earners to opt out of receiving SG contributions from a particular employer to ensure they do not exceed the concessional contributions cap.
Eligible employees will be high earning individuals with more than one employer who expect their income for SG purposes (ordinary time earnings) will exceed $263,157 in the income year.
Interestingly, the ATO states that employers will not be bound by the exemption certificate. The application of these rules and any changes to an employee’s remuneration package would need to be negotiated between employees and their employers.
To find out more about the information of Employee Remuneration Package that you have concerns with, please contact Tax Ideas Accountants & Advisers…http://taxideas.com.au/booking/ Tel: (02) 8318 1545