Super guarantee opt-out

Super guarantee opt-out for high-income earners now law

From 1 January 2020, eligible individuals with multiple employers can apply to opt out of receiving super guarantee (‘SG’) from some of their employers, to help them avoid unintentionally going over the concessional contributions cap.

If appropriate for them, they should submit the relevant ATO form to apply for an SG employer shortfall exemption certificate, which releases one or more of their employers from their SG obligations for up to four quarters in one financial year.

Omnis Group can assist with the lodgement of this form.

Note that this measure may not benefit everyone who is eligible, so before lodging the form, it is important to consider the individual’s employment arrangements, such as how their pay and other entitlements may change (if at all), and the effect of any relevant award or workplace agreement applicable to them.

The measure only became law on 2 October 2019, so to give eligible employees time to make an application, 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; and
  • fourth quarter commencing 1 April 2020 — lodge on or before 31 January 2020.

A separate application is required for each financial year.

Employing people involves lots of obligations, including superannuation. We have the tools and advice to help you get it right – call the team at Omnis Group in Perth on 08 9380 3555.

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