Rules before 1 January 2020:

Current rules:

  • After this date, salary sacrifice will not reduce the your super guarantee obligations, regardless of the amount your employee elects to salary sacrifice.
    This means the salary sacrificed amount does not count towards your super guarantee (SG) obligations.
    • A further change is that the super guarantee will be 9.5% of the employee's ordinary time earnings(OTE) 'base'. The base is the sum of:
      • the employee's OTE, and
      • any amounts which would have been OTE, had they not been salary sacrificed into a complying super fund or Retirement Savings Account.
  • Maximum contribution base - you don't have to pay SG for employee's earnings above a certain limit. 
  • If you go over the concessional cap, the excess is included in your assessable income for tax return.