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If you are a high income earner, and, you have more than one employer, you may be able to opt out of superannuation guarantee payments from one employer. This will help you avoid unintentionally going over the concessional contributions cap.
This is only applicable if you expect your employers’ mandated concessional super contributions to exceed your concessional contributions cap for a financial year.
How To Opt Out
- Individuals will need to apply for an exemption certificate from the ATO. The certificate releases one or more of your employers from their superannuation guarantee obligations for up to four quarters in one financial year. You will still need to receive SG contributions from at least one of your employers for each quarter.
- It is important to talk to your employer before applying as they can choose to disregard an exemption certificate and continue to make SG contributions.
- Lodging must be done on or before 31 January 2020 for the fourth quarter commencing 1 April 2020. A separate application must be submitted each financial year.
This may not be appropriate for everyone who is 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. If you’d like to discuss this further, please do not hesitate to contact us on (02) 9908 9888.