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Thursday, 28 August 2014

Reportable Employer Superannuation Contributions

Reportable employer superannuation contributions are additional contributions made to a superannuation fund on behalf of an employee.
Reportable contributions must be reported on an employee's payment summary because they may affect the employee's tax liability and their eligibility for various government benefits.
Generally, reportable contributions include:
  • Contributions made under a salary sacrifice arrangement; and
  • Additional amounts paid to an employee's superannuation fund as directed by the employee.
Extra superannuation contributions negotiated under an individual employment contract are usually considered reportable contributions, unless either of the following is demonstrated:
  • The additional contributions are made for administrative simplicity; or
  • A policy is documented, proving that the employee is not allowed to influence the contributions made by the employer on their behalf.
The following items are not regarded as reportable contributions:
  • All superannuation guarantee contributions (minimum compulsory contributions);
  • Compulsory contributions required by the governing rules of a superannuation fund or by a Commonwealth, state or territory law; and
  • Employer contributions made under a collectively negotiated industrial agreement.
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