I am being made redundant in July, but my annual Incentive payment won't be made until October. If my employer agrees to it - is it okay to still nominate to have some or all of the bonus sacrificed to my superannuation?
Hiya @LynneT 👋
Because the ATO requires that effective salary sacrifice arrangments apply to future income only, the issue becomes about the basis of the "annual incentive payment". For example, if it applies to work you performed before you terminated, if the salary sacrifice arrangement wasn't in place before the work that is considered for the bonus was actually worked, you cannot now sacrifice it: after the event.
If the arrangement was in place BEFORE you worked the hours to which the bonus relates, then it may be sacrificed to super, if your super fund is still active and open to employer contributions.
Deanne
Hiya @LynneT 👋
Because the ATO requires that effective salary sacrifice arrangments apply to future income only, the issue becomes about the basis of the "annual incentive payment". For example, if it applies to work you performed before you terminated, if the salary sacrifice arrangement wasn't in place before the work that is considered for the bonus was actually worked, you cannot now sacrifice it: after the event.
If the arrangement was in place BEFORE you worked the hours to which the bonus relates, then it may be sacrificed to super, if your super fund is still active and open to employer contributions.
Deanne
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