An employer’s superannuation guarantee liability cannot be reduced by salary sacrificed contributions from 1 July 2020. This change intends to bring integrity to an employee’s superannuation guarantee by removing the ability for an employer to short-change their super obligations.
If the legislation is enacted, employers will be required to ensure that their payroll software correctly identifies the base amount which calculates superannuation guarantee.
Also, special considerations will need to be made in situations where closely-held payees make “salary sacrifice” contributions to super.
Source: Treasury Laws Amendment