From 1 January 2020, salary sacrifice amounts can no longer be used to reduce employers’ SGC obligations. Prior to this date, salary sacrificed amounts to super reduced the employer obligation of 9.5% of gross salary.
For example, an employee receiving $100,000 salary would ordinarily be entitled to $9500 superannuation guarantee. If they salary sacrificed $10,000 into Super, the gross salary would be reduced to $90,000 and the employer obligation would be $8550 (9.5% of $90,000). Under the new legislation, the obligation would still be $9500 despite the reduced wage after salary sacrifice.
For more information regarding these changes, please visit ATO website here:
https://www.ato.gov.au/Business/Super-for-employers/In-detail/Salary-sacrifice/Salary-sacrificing-super---information-for-employers