Superannuation Guarantee (SG) contribution changes

There has been an important change to the amount of Superannuation Guarantee (SG) contribution an employer must make on behalf of an employee who salary sacrifices part of their salary or wage into super.

What you need to know?

Simply, from 1 January 2020, employers are required to base the SG contribution on the employee’s pre-salary sacrifice income. 

Employers must not use employee salary sacrifice amounts to reduce their minimum SG contribution.  This does not stop employers who employ long distance drivers from using the current methods of calculating superannuation, especially the three methods permitted under Australian Taxation Office guidance ( https://www.ato.gov.au/Business/Super-for-employers/In-detail/Ordinary-time-earnings/Long-distance-drivers---OTE/):

Employers are able to calculate super guarantee (SG) for long-distance drivers using one of three methods:

  • minimum-guaranteed-wage method (cannot be used when the driver's wages paid is more than the minimum under one of the other two methods).
  • hourly-driving-rate method
  • cents-per-kilometre method.

Call NatRoad on 1800 272 144 if any further clarification is needed.