High-income earners with multiple employers, such as doctors working at several hospitals, should review their superannuation guarantee (SG) contributions. Receiving SG from multiple employers can quickly exceed the annual concessional contributions cap, leading to excess contributions tax.
You can manage this risk by applying for the Superannuation Guarantee (SG) Employer Shortfall Exemption Certificate using ATO Form NAT 75067.
1. What the SG Exemption Certificate Does
The exemption certificate allows you to release one or more employers from their SG obligations for a specific quarter. This helps prevent your total mandated contributions from exceeding the concessional contributions cap.
Important notes:
- A separate application is required each financial year.
- The ATO will update next year’s form to comply with the upcoming superannuation changes.
2. Who Can Apply?
Only employees—not employers—can complete Form NAT 75067. You may apply only if all of the following apply:
- You have more than one employer, and
- You expect your combined mandated concessional contributions to exceed the annual concessional contributions cap, and
- You will still receive SG contributions from at least one employer during the quarter covered by the exemption.
3. Key Deadlines
Deadlines are strict:
- The form must be lodged at least 60 days before the first day of the quarter for which the exemption is sought.
- At this stage of the financial year, you can only apply for the final quarter.
- This application must be submitted by 31 January.
Due to the limited application window, many employees miss the deadline each year.
4. Before You Apply: Potential Impacts
While the exemption can prevent excess contributions, it may also affect your total remuneration. If you are considering opting out of SG, review the following impacts on your remuneration:
- If an employer stops SG payments, your total remuneration may decrease unless your salary is adjusted upward.
- Other employment entitlements linked to ordinary time earnings may also change.
- Without a compensating salary adjustment, opting out may leave you financially worse off.
5. If You Don’t Apply and Exceed the Cap
Exceeding the concessional contributions cap is often less problematic than expected.
How excess concessional contributions are taxed:
- They are included in your assessable income for the year.
- They are taxed at your marginal rate, minus a 15% non-refundable tax offset, which reflects the contributions tax already paid by your super fund.
- Essentially, the excess is taxed as salary rather than as a super contribution.
How refunds are processed:
- Released amounts are paid to the ATO, not directly to you.
- The ATO:
- Applies the funds to any outstanding tax obligations, then.
- Refund the balance to you.
As a result, missing the SG exemption deadline is often not a significant issue.
What’s My Next Step?
If you are unsure whether the SG exemption is right for you or how it may affect your financial position, our superannuation specialists can assist.
For a free, no-obligation 15-minute online consultation to discuss your SG strategy, book online using the link below or request a callback at 1300 726 082.
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