If you’re a high income earner with multiple employers, there’s a good chance that you may unintentionally exceed the super concessional contributions caps in any year, which may cause excess contribution issues. To remedy this, laws have recently been passed to allow you to opt out of the super guarantee. All you have to do is apply to the ATO, but it’s a good idea to speak to your employers first, as it may impact relevant awards or workplace agreements in place.

Under the superannuation guarantee framework, employers are required to contribute a minimum percentage (currently 9.5%) of their employees’ ordinary time earnings into superannuation. Employers that fail to do so will be liable for a penalty called the superannuation guarantee charge, payable to the ATO. If you’re a high-income earner with multiple employers, this requirement has the very real chance of inadvertently pushing you over the concessional contributions cap of $25,000.

To avoid this unintended consequence, laws have recently been passed so that eligible high-income earners with multiple employers can opt out of the super guarantee regime. From 1 January 2020, employees with more than one employer who expect their combined employers’ contributions to exceed the concessional contributions cap can apply for an employer shortfall exemption certificate with the ATO.