High earning individuals will have an option to opt-out of receiving certain superannuation guarantee amounts from 1 July 2018. Under the proposed legislation, employees earning over $263,157 with multiple employers will be allowed to receive additional cash from the second employer.

This additional cash received in lieu of superannuation guarantee will prevent an inadvertent breach of the super contribution rules, which are taxed at penalty rates.

The law will be enacted allowing the ATO to issue an employer with a shortfall exemption certificate. This can only occur when an employee would likely have excess concessional contributions.

This new law, when enacted, may free up additional cash flow for high income earning individuals, as well as reduce overall paperwork for superannuation compliance.

Source: Treasury Laws Amendment (2018 Superannuation Measures No 1) Bill 2018Budget paper No 2, p 40

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