Are you an employed dentist finding yourself working for multiple employers in any given financial year?
Do you anticipate super contributions paid on your behalf to be in excess of $25,000 each year?
If your answer to both questions is YES then the Super Guarantee Opt-Out for High-Income Earners regime may be worth considering.
Ordinarily employers are required to pay 9.5% superannuation guarantee on behalf of all eligible employees to their superannuation funds on a quarterly basis.
Under the Super Opt-Out provisions you may be able to elect for one or more of your employers to “opt out” of paying superannuation guarantee on your behalf (for one or more quarters in the year). Importantly, still ensuring you receive superannuation guarantee contributions from at least one of your employers.
The ‘opt out’ option is designed to aid employees, such as dental practitioners avoid unintentionally breaching their concessional contributions cap of $25,000 per annum merely as a result of having multiple employers.
It is important to talk to your nominated employer about the impact an exemption might have on your overall remuneration and other entitlements, negotiation with your employer is key when it comes to how the forgone superannuation amount could be factored in so as to not be disadvantaged.
There are strict deadlines concerning the application form, employees will need to lodge the completed form with the Australian Taxation Office at least 60 days before the first day of the first quarter that the exemption certificate will apply to.
Keep in mind employers can also disregard an exemption certificate should they choose to do so.
A separate application is also required for each new financial year and once a certificate is issued it cannot be varied or revoked.
If you would like to know how this might impact you or need our assistance with the application, please get in touch.