This is actually not a rort at all - that's just a headline. It's a feature of SG in the context of salary sacrifice arrangements and has been since SG was introduced. Also remember the ATO is forgoing tax by allowing funds to be diverted by salary sacrifice. Always a feature in my salary packaging software when sg was introduced, was a choice of calculating SG on gross or nominal salary or on actual salary paid after salary sacrifice. I sort of wonder how it's a headline twenty plus years later... Any advisor recommending salary sacrifice would of course have alerted his clients to this and had it all contracted with the employer when the arrangements were made. Didn't you????