Individuals with high incomes will have the options to opt-out of receiving certain super guarantee amounts from July 1, 2018. Under proposed Legislation, employees earning in excess of $263,157 with multiple employers will be able to receive additional cash from the second employer in lieu of the SG entitlements.
This cash will prevent inadvertent breaches of the super contribution rules, which means you get to keep the money in your pocket and not pay any penalty rates for breaching contribution caps.
The law will be enacted allowing the ATO to issue an employer with a shortfall exemption certificate. This will only occur where an employee would likely have excess pre-tax contributions.
When put in place, this law will likely free up extra cash flow for high earning individuals, as well as reduce paperwork for super compliance.
