Were you aware that, if you meet certain conditions, you may not have to receive the super guarantee from some of your employers?
From 1 January 2020, eligible individuals with multiple jobs have been able to apply to opt out of receiving a super guarantee (SG) from some of their employers.
You may be eligible to apply if you:
- have more than one employer and
- expect that your employers’ mandatory concessional super contributions will exceed your concessional contributions cap for a financial year.
Eligible employees can apply for the super guarantee shortfall exemption certificate when they complete the Super guarantee opt-out for high-income earners with multiple employers form (NAT 75067).
When you opt out of SG contributions, you must still receive SGC from at least one employer. If other employers agree to use the SG exemption, then they may provide an alternative remuneration package instead so as not to be disadvantaged.
However, the exemption certificate:
- Does not restrict the employer from making super contributions on behalf of the employee.
- Does not change the employer’s obligations or an employer’s agreement with their super fund.Cannot be varied or revoked once issued.
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. You must talk to your employer before applying, as they can choose to disregard an exemption certificate and continue to make SG contributions.
This measure may not benefit everyone eligible. Consider your employment arrangements, such as how your pay and other entitlements may change and the effect of any relevant award or workplace agreement applicable to you to determine if this measure will benefit you.
As your accountant or tax agent, we may be able to provide further advice based on your circumstances, so why not speak with us?