From 1 January 2020, salary sacrificed superannuation contributions cannot be used to reduce an employer’s Superannuation Guarantee obligations, regardless of the amount your employee elects to salary sacrifice.
Therefore, salary sacrificed amounts do not count towards your Superannuation Guarantee obligations.
This change means that the employee’s 9.5% Superannuation Guarantee is now calculated as –
- The employee’s ordinary time earnings (OTE); AND
- The amount of salary sacrificed from the employee’s OTE.
CHECK – review your salary sacrifice arrangements to ensure they are calculating correctly and that 9.5% employer superannuation obligations are not reduced by salary sacrificed amounts.
Contact the team at MKS Group on 03 9374 8400 to arrange a review of your superannuation obligations.