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What is a reportable employer superannuation contribution?
Superannuation is money set aside in a superannuation fund to assist with retirement planning. As part of the superannuation guarantee rules, your employer is required to pay a specific amount into your specified super fund. Other sorts of contributions, such as additional payments made by your employer, may be able to boost your superannuation balance. These extra payments are referred to as "reportable employer super contributions" or RESC, which indicates that they must be disclosed to the ATO.
Reportable super contributions, according to the ATO, are any contributions to your superannuation that meet these criteria:
- An employee determines or influences the rate or amount an employer contributes towards their super.
- The contributions are in addition to the mandatory payments required by the Superannuation Guarantee, a negotiated industrial agreement, a super fund's regulations, or federal, state, or territory legislation.
Additional contributions as part of an individual's pay package, extra money deposited into super through salary sacrificing, and pre-tax super contributions, such as depositing an annual bonus into your super account, are all examples of reportable employer superannuation contributions.
What are the different non-reportable and reportable employer superannuation contributions?
The following are regarded as non-reportable and reportable super contributions:
- Contributions to the super guarantee
- Contributions mandated under collectively negotiated industrial agreements
- Contributions that are matched as part of a collective agreement
- Contributions that are mandated by super fund rules or federal, state, or territory legislation
- Extra contributions that you had no control over, such as additional contributions for administrative ease or agreed employer policy
- Contributions made from your post-tax earnings
- Any additional contributions made as part of your salary package
- Additional contributions made under salary sacrifice
- Bonuses, lump sums, and other employment payments deposited to your super fund
What effect would reportable super contributions have on me?
Reportable super contributions can impact various tax offsets and concessions, including:
- Super benefits and taxes, such as the spouse contribution tax offset or the government co-contribution
- Benefits from the government such as family tax benefits, parental leave, childcare allowances, and healthcare card
- Other fees and offsets include the tax offsets for elderly and retirees, the Medicare levy surcharge, and your private health rebate.
How do I disclose my reportable employer superannuation contributions?
If your employer provides reportable employer super contributions to your super, they must mention the amount on your payment summary when it comes time to file your taxes. You must then mention this amount on your tax return, but you will not be charged tax on it. You must also declare any reportable personal concessional contributions on your tax return.
To better understand reportable super contributions, you may want to consult an expert such as an accountant who could help resolve doubts and make the process easier.
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