Reportable superannuation contributions are required for the calculation of a range of thresholds, tax-concessions, deductions, levies, Centrelink payments and benefits.
So, what are reportable super contributions?
What Are Reportable Superannuation Contributions?
Reportable superannuation contributions are contributions made into superannuation over and above mandated super contributions.
The two categories of reportable super contributions are:
- Reportable personal concessional contributions; and
- Reportable employer super contributions (RESC).
It is possible for your reportable super contributions in any one year to consist of both personal concessional contributions and reportable employer super contributions.
Reportable Personal Concessional Contributions
Personal concessional contributions are contributions that you make into superannuation and then claim a tax deduction for the contribution amount on your individual tax return.
For example, you might contribute $10,000 to super from your bank account and then claim a $10,000 tax deduction. This would be considered a reportable superannuation contribution.
Reportable Employer Super Contributions?
Reportable employer superannuation contributions are contributions that your employer makes into your super account for you, but does not include the mandatory superannuation guarantee (SG) contribution amount.
Reportable employer super contributions also do not include any after-tax (non-concessional) contributions made from your employer directly into your super account.
Types of reportable employer super contributions include salary sacrifice contributions, additional super contributions (above SG contributions) as part of your salary package or bonuses/lump sum employment payments made directly into super.
The table below differentiates between reportable and non-reportable employer super contributions.
|Type of Contribution||Is this a Reportable Employer Super Contribution?|
|Mandatory Employer Superannuation Guarantee (SG) Contributions||No|
|Salary Sacrifice Contributions||Yes|
|Employer Super Contributions Above Mandatory SG Contributions||Yes|
|Bonuses / Lump Sums / Other Payments Directed to Super (Concessional)||Yes|
|After-Tax (Non-Concessional) Contributions Paid Directly from Employer to your Super||No|
|Salary Packaged Super Contributions||Yes|
How Will Reportable Super Contributions Affect Me?
Many thresholds, including tax calculations, surcharges, levies, concessions and Centrelink payments are based on your taxable income. So, if you consider yourself as a bit of a bad-ass rule breaker looking for loopholes, you might consider increasing super contributions to qualify for, or receive, greater benefits and concessions. But, unfortunately for you cowboy, this is where reportable employer contributions come into play. In order to stop you from reducing your taxable income by making additional super contributions, you will often need to disclose reportable super contributions.
Types of assessments that rely on disclosure of reportable super contributions include, but are limited to:
- Government benefits such as family tax benefits, child care subsidies, child support, parental leave, health care cards;
- Super benefits and taxes, such as spouse contribution tax offset, co-contribution, low-income super tax offset, Div 293 tax; and
- Other offsets and levies, such as seniors and pensioners tax offset, Medicare Levy surcharge and private health rebate.
Spouse Reportable Superannuation Contributions
Certain family benefits and concessions are based on the income of both you and your spouse. In these instances, the income assessed will also include reportable superannuation contributions.
Therefore, when completing certain documentation, not only will you need to disclose your reportable super contributions, but also your spouse’s reportable super contributions.
Are Reportable Super Contributions Taxable?
Reportable super contributions are classified as concessional contributions. Therefore, when contributed to your super fund, contributions tax of 15% will be deducted from the contribution, just like any other concessional contribution.
If you are a very high income earner, an additional 15% Division 293 tax will be applied to your reportable super contributions.
Reportable super contributions are not assessed for individual income tax purposes.
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