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An individual's salary sacrifice superannuation contribution is now protected
Employee salary sacrifice superannuation contributions are voluntary additional contributions to the individual’s superannuation fund that reduce the ordinary earnings of the employee for PAYGW purposes. That is, the superannuation salary sacrifice contributions are deducted from the employee’s wage before tax is calculated.
There has been a ‘loophole’ in the law that has meant the employer may use this voluntary additional sacrificed superannuation contribution to reduce the amount of superannuation guarantee obligation. The Treasury Laws Amendment Bill (2019 Tax Integrity and Other Measures No.1) Bill 2019 received Royal Ascent on 28th October 2019 and ensures that an individual’s salary sacrifice can no longer be used to reduce an employer’s minimum Superannuation Guarantee obligations. This legislation comes into effect from 1 January 2020.
You can read more about this legislation