Salary Sacrificing Changes: Information for Employers

From 1 January 2020, salary sacrificed super contributions cannot be used to reduce your super guarantee obligations, regardless of the amount your employee elects to salary sacrifice.

This means for the purposes of super guarantee (SG), the salary sacrificed amount will not count towards your super guarantee obligations.

In addition, the amount of super you are required to pay, to avoid the super guarantee charge will be 9.5% of the employee’s ordinary time earnings (OTE) base. The employee’s OTE base is the sum of the employee’s OTE and any sacrificed OTE amounts.

You will need to:

  • review your salary sacrifice arrangements, ensuring:
    • using your employee’s OTE base to calculate your SG obligation
    • not counting salary sacrificed amounts towards the minimum amount of SG you have to pay
  • check that all of your systems correctly calculate your SG obligation in light of these changes

If you need to talk to somebody about how this change may affect your business, please contact a C&D consultant today on 1300 023 782 or email