Removal of Salary Sacrifice items: Reduce Employer Contributions (SA, CA)
Effective from 1 January 2020, employers can no longer use employee salary sacrificed superannuation contributions to either:
- reduce the OTE amount used to calculate SGA; or
- reduce the amount of SGA that they pay by the sacrificed contribution amount
Reference: Treasury Laws Amendment (2019 Tax Integrity and Other Measures No. 1) Bill 2019, Schedule 7.
To cease reducing the SGA amount from Salary Sacrifice items:
- Go to the Employee's profile > Edit Employee
- Change tabs to: Payroll and Compensation Info > Super Details...
- Un-tick the following option from Employee Settings: Salary Sacrifice items: Reduce Employer Contributions (SA _CA)
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