Certain individuals will have an option to opt-out of receiving certain superannuation guarantee amounts with the passing of new legislation. Under the proposal, individuals with multiple employers may get additional cash from their second employer if they can show an unintended breach of contributions caps.
Generally, a breach may bring additional personal tax payable plus shortfall interest charge.
The new law will allow the ATO to issue an employer with a shortfall exemption certificate. This can only occur when an employee would likely have excess concessional contributions and removes the employer’s potential liability for super guarantee charge.
This new law, when enacted, may reduce overall paperwork for superannuation compliance of high income earning individuals. Also, it may remove unintended interest and penalties.
Source: CCH iKnow
