Not all super payments are the same
What are reportable employer super contributions?
A reportable super contribution is an extra superannuation payment requested by an employee and made by an employer, over and above the normal 9.5% super guarantee (SG) contribution. The most common example is salary sacrifice, but reportable contributions also include items like a request to have the individual’s next pay increase go into super.
What are the different reportable payments?
The following is a guide to the most common super payments, and whether or not they are classed as reportable contributions.
|Type of super contribution||Is it a reportable contribution payment?|
|Normal 9.5% employer SG payments||No|
|Individual salary package with extra super||Yes – but only the extra super|
|“Just send it to super” – where an employee asks payroll to do this with a windfall such as a bonus.||Yes – but only the amount that’s in excess of regular super|
|Extra super for all employees with no employee opt-out||No|
|Contributions from an employee’s after tax (non-concessional) income||No|
The ATO has more information on reportable super contributions.
Joe earns $100,000 per year with $12,000 going to super under an individual agreement.
Under the Super Guarantee, Joe’s employer must pay $9,500 (ie $100,000 x 9.5%)
Joe receives an extra $2,500 super per year (i.e. $12,000 - $9,500)
This extra $2,500 is the reportable super contribution. It’s listed separately on Joe’s group certificate and is needed for Joe’s tax return.
Why do reportable contributions matter?
Extra super contributions above the compulsory Super Guarantee can affect a whole range of ATO calculations for employees and the self-employed - especially in relation to income tests used to work out the Medicare levy, tax offsets and Higher Education Loan Program (HELP) repayments.
How do I report these super contributions?
At the end of each financial year, you include any reportable employer super contributions on the employee’s annual payment summary (also known as the Group Certificate).
Who is TWUSUPER?
TWUSUPER is the Industry SuperFund for people in transport and logistics - the people who keep Australia moving. We exist only to benefit our members, and have been helping employers manage employee super since 1984. We currently manage over $5 billion.
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