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  • Superannuation Guarantee – Salary sacrifice integrity

    Legislation to prevent employers from using employee salary sacrificed amounts to reduce their minimum superannuation guarantee is currently before Parliament.

    The draft legislation amends the Superannuation Guarantee (Administration) Act 1992 to provide that amounts sacrificed under an employee salary sacrifice arrangement will not reduce and/or satisfy an employer’s mandated Superannuation Guarantee (SG) contributions from 1 January 2020.

    Additionally, the base amount on which SG is calculated will no longer be able to be reduced by any salary sacrificed amount.

    Implementation of this measure will increase the superannuation savings of those people who utilise these arrangements and will be consistent with the Fair Work Act 2009.

    Legislation and supporting material

    The Treasury Laws Amendment (2019 Tax Integrity and Other Measures No.1) Bill 2019External Link was introduced to Parliament on 24 July 2019.

    See also:

      Last modified: 05 Nov 2019QC 54420