Effective January 2020, Pre-tax Super Salary Sacrifice does not reduce employer's SG obligation. Are you able to clarify if other pre-tax packaged items re. Parking, Nov Lease Pre Tax, Insurance and Car Deduction can reduce employer's SG obligation?
Thanking you in advance.
Hi @RossanaLi,
Your understanding is correct for the salary sacrificing into super, doesn't reduce SGC the employer has to pay.
Whereas a fringe benefit amount for i.e., novated lease, parking not contributed into a super fund is not looked at as OTE for SG.
The employer pays SG on the reduced salary, which doesn't include your fringe benefit amount.
You can check out this ruling under, SGR 2009/2 para 46.
Hi @RossanaLi,
Your understanding is correct for the salary sacrificing into super, doesn't reduce SGC the employer has to pay.
Whereas a fringe benefit amount for i.e., novated lease, parking not contributed into a super fund is not looked at as OTE for SG.
The employer pays SG on the reduced salary, which doesn't include your fringe benefit amount.
You can check out this ruling under, SGR 2009/2 para 46.
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