I am looking to confirm if SG contributions are payable on salary sacrifice amounts made by employees to non-superannuation arrangements, e.g. amounts paid to a mortgage or to rent etc. We are a non-profit health promotion charity with DGR endorsement, and our salary sacrifice arrangement are free from FBT up to the threshold.
Our understanding of the changes made to the Superannuation Guarantee (Administration) Act 1992 in 2019 is that the definition of OTE base includes salary sacrifice contributions made to a complying superannuation fund. It does not include other salary sacrifice arrangements (as per Subsection 15A of the Act, and page 71 of the Parliament explanatory memorandum on the Treasury Laws Amendment (2019 Tax integrity and Other Measures No.1 ) Bill 2019).
We have received conflicting advice from our bookkeeper (and in-turn the Institute of Certified Bookkeepers) who believe all salary sacrifice amounts are captured in OTE base, but this doesn't align with my reading of the Act and the changes made in 2019.
I am therefore seeking help from an expert to ensure we have this correct, as the ATO are not responding to my query and our bookkeeper is pressing to lodge and SGC liability report with the ATO.
Thanks
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