Until December 2019, if you had several employers making super guarantee (SG) contributions on your behalf, all of them were required to make SG contributions – even if that meant you exceeded your concessional (before-tax) contributions cap. For most of us, this cap is currently set at $25,000. If you exceed the cap, you may have to pay additional tax.
From 1 January 2020, if you are a high-income earner with multiple employers, you can apply to opt out of receiving SG contributions from some of your employers. This change is designed to help you avoid unintentionally going over your concessional contributions cap.
To be eligible to opt out, you must have more than one employer and expect the total of your employers’ SG contributions to exceed your concessional cap for the financial year. Employees in this situation can submit a Super guarantee opt out for high income earners with multiple employers form to the ATO. If your application is approved, the ATO will issue an SG employer shortfall exemption certificate and the employer will not be liable for the SG contribution for the exempted period.
It’s important to talk to your employer before applying as they can choose to disregard an exemption certificate and continue to make SG contributions.