An update posted on the ATO website on Friday revealed that following the recent passage of the Treasury Laws Amendment (2018 Superannuation Measures No. 1) Bill 2019 through Parliament, individuals would be able to apply for contribution exemptions from 16 October.
“Individuals with more than one employer, who expect their employers’ compulsory super contributions will exceed their annual concessional contributions cap for a financial year, will be able to apply for an exemption certificate to release some of their employers from their SG obligations,” the ATO said.
“Individuals will still need to receive SG payments from at least one employer.”
To apply for the exemption, trustees would need to submit the relevant form 60 days before the start of the next quarter. However, given the laws had only been passed recently, the deadline would be extended for the January quarter, the ATO said.
“The Commissioner of Taxation has extended the lodgement period for the quarter commencing 1 January 2020 only, and will accept applications lodged on or before 18 November 2019,” the office stated.
“The application form provides the commissioner with the information required to make an assessment, including which employers the exemption certificate will apply to [and] the quarters in the financial year for which the exemption is sought.”
The new rules will give high-income earners, such as doctors, the flexibility to ensure they do not breach the concessional cap through having multiple employers. However, SMSF members affected will need to consider alternative arrangements to ensure they are not shortchanged in their contributions, according to Heffron SMSF Solutions managing director Meg Heffron.
“The certificate process is completely silent on whether the individual and their employer have negotiated some form of alternative compensation for the loss of the superannuation contributions,” Ms Heffron said in a recent blog post.
“This is left entirely to the two parties to resolve themselves and may sometimes mean it is better not to use the new rules. For example, an individual who is unable to reach an agreement with their employer to provide additional wages in lieu of compulsory contributions may choose not to apply for the notice.”
Ms Heffron suggested a number of contribution options to ensure affected trustees were still maximising their concessional contributions, including negotiating a mix of contributions and additional salary from their exempt employer, or asking for additional salary sacrifice contributions from the employer that was still paying SG contributions.
“As with any negotiations around salary and superannuation, both parties would need to carefully consider the impact of their chosen arrangement on other benefits that are linked to salary,” she said.
30 September 2019
For more than 20 years, Sam has been a financial planner helping individuals and families achieve their financial planning goals, by providing advice on Investment Planning; Insurance Planning; Tax Planning; Retirement Planning; and Estate Planning. Working with a network of highly skilled professionals in Sydney he is dedicated to providing high-quality advice and integrated wealth management solutions that simplify and enhance the quality of his clients' lives.
Sam established his own firm in 1997 and has overseen its steady development and growth. Attention to detail, good listening skills and great empathy are symbols of his appreciation by his clients. He has built long-term relationships with his growing client base and aims to provide excellent customer service.
Sam began his financial planning career in 1993 after completing a Bachelor of Science degree in 1991. Since this time he has accumulated many professional qualifications such as:
Sam has volunteered with the Cancer Council of NSW and can be seen almost every year volunteering or participating in the 7 bridges walk.
Away from the business, he enjoys spending weekends with his son. He is also a football (soccer) tragic and is a massive Chelsea FC fan.
Having worked for national financial planning companies in the past, George has extensive experience in the provision of advice in risk insurance, investments and retirement planning and is focused on forming long-term relationships with his clients.
George has been awarded a Masters of Commerce (Financial Planning) and a Bachelor of Commerce through University of Western Sydney as well as having the Diploma of Financial Services (Financial Planning).
Jane Lim is a friendly character with a bubbly personality. She has the unique ability of making complex information sound simple and easy to digest.
Jane entered the financial services industry in 2006, and worked with big blue-chip financial companies such as Count Financial Limited and AMP Financial Planning Pty Ltd.
She holds a Master's degree in Applied Finance through Macquarie University, and she is a member of the Million Dollar Round Table.
Being a self-confessed "tennis nut", Jane spends many weeknights in the tennis court, and is a frequent member of Sydney's Eastern Suburbs Tennis Competition.
Being a highly motivated professional, Jane is always eager to help her clients on a wide range of financial planning needs.
Paul has been a financial planner for over 15 years helping individuals and families successfully achieve their financial planning goals. He is very focused on building successful long-term harmonious relationships with his clients.
He provides a holistic approach on various aspects of financial advice encompassing areas such as Investment Planning; Insurance Planning; Tax Planning; Retirement Planning and has extensive experience and knowledge in these fields.
Paul's professional qualifications are:
Away from his professional life, he enjoys spending his time with his family doing various activities such as coaching his son and taking him to games. He is a very avid sports fan and a cricket enthusiast.
Client Services Manager
Christian joined Capitalwise as Client Services Manager, with backgrounds in both customer service and administration.
Christian is passionate in providing excellent customer service by being attentive to client’s need as well as being able to circumnavigate challenges.
He holds a Master's degree in Commerce specialising in Marketing through the University of New South Wales.
Volunteering is one of his delights in life, where he had spent time being involved with the Centre for Volunteering, St Vincent de Paul's Society, and Sculpture by the Sea in a variety of positions.
Jenny is a University of New South Wales graduate who joined the team as an Administration Assistant. She is keen to put her customer service and organisational skills to use, making sure day to day operations run as smoothly as possible.
Outside of work, Jenny focuses her efforts on karate and ice hockey. She can often be found coaching and practicing karate at her alma mater. The rest of her time is spent at one of Sydney’s many ice rinks playing, practicing, or officiating ice hockey.
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