WHAT THE TAX?!!
Super guarantee opt-out for high income earners
The government has recently introduced legislation into parliament which will allow high-income earners to avoid the superannuation contributions cap.
The proposal is to allow an individual with multiple employers to stop one employer from making superannuation guarantee contributions. This option is only available where the individual is earning above $263,157 per year and it is likely they exceed the concessional contributions cap.
Currently, the concessional contributions cap is $25,000 per annum per person. Should the legislation receive royal assent in its current form it will commence from 1 July 2018.
Strict rules may apply in order to receive this allowance, which effectively will reduce paperwork for inadvertent breaches of the contributions cap.
Information sourced using CCH iknow