New Superannuation Legislation
Effective January 1 2020

Last updated on February 13th 2020 at 10:06 am

Effective as of January 1, 2020 the new Super legislation means an employee’s 9.5% super guarantee is now calculated based on their ordinary time earnings (OTE), ie their earnings before salary sacrifice, therefore resulting in more superannuation paid to the employee.

Prior to this change, if an employee salary sacrificed a portion of their wage into Super it reduced their taxable salary and meant their 9.5% super guarantee was calculated based on the lower earning total after salary sacrificed amount.

We suggest that employers double-check their superannuation guarantee calculations from 1 January 2020 (whether that be your own manual calculations or those prepared through an accounting program such as Xero or MYOB) to ensure that you are meeting your superannuation obligations.

Any questions or concerns, contact your CIB Adviser or Accountant.

For more information visit the ATO: Salary Sacrificing Super