ATO provides further details on SG exemption measure
Following the government’s budget announcement that it will allow high-income earners to exclude wages from certain employers from SG, the ATO has provided information on the application process for this.
Under this new budget measure, the ATO said individuals with more than one employer who expect their income for SG purposes will exceed $263,157 for the financial year will be able to apply for an exemption certificate to release some of their employers from their SG obligations.
From 1 July 2018, the ATO said eligible individuals will be able to download an application form from the ATO website that will need to be completed and returned to the ATO for approval.
At this stage, the ATO said it is anticipated that individuals will need to submit their applications 60 days before the start of the quarter that the exemption will apply to.
“The application form will request all information required for the commissioner to make an assessment including which employers the exemption certificate will apply to and the quarter in the financial year to which it should apply,” it said.
“Exemption certificates may be issued for multiple quarters within a financial year and will not extend beyond the financial year in which they are issued.”
If approved, the ATO said the individual and their exempted employers will receive a copy of the exemption certificate directly from the ATO.
“By issuing an exemption certificate the commissioner will provide certainty for the employer as, once issued, the certificate cannot be varied or revoked,” it explained.
“Employers can choose to not comply with the exemption certificate. The take-up of this arrangement and any changes to remuneration would need to be negotiated between the employees and the employers.”