From 1 January 2020, where an employee salary sacrifices part of their salary into superannuation contribution benefits, these superannuation contribution amounts will be subject to further 9.5 per cent superannuation contributions. Employers who currently contribute the 9.5 per cent superannuation guarantee based on the cash salary only will need to update their systems to comply with the new law by 1 January 2020.

Remuneration $100,000 per annum (excluding superannuation guarantee contributions). Employee salary sacrifices $10,000 into superannuation; therefore, $100,000 remuneration is made up of $90,000 cash salary and $10,000 benefits. Prior to 1 January 2020, the employer was only obligated to contribute superannuation guarantee on the cash salary of $90,000 (which at 9.5 per cent is $8,550). From 1 January 2020, the employer will be required to contribute superannuation guarantee based on the full remuneration of $100,000 p.a. (which at 9.5 per cent is $9,500 (being an increase of $950 p.a.) (in addition to the $10,000 salary sacrifice contributions).

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