Additional superannuation reporting requirements for employers
New income test reforms were recently introduced and apply from 1 July 2009. These changes impact whether an individual is entitled to various superannuation contribution concessions and whether their employer is required to disclose Reportable Employer Superannuation Contributions (RESC) on their payment summary.
The information will be used to enable means-testing of the following superannuation concessions:
- Income tax deductions for personal concessional contributions
- Spouse contribution rebates and
- Superannuation co-contribution.
Reportable Employer Superannuation Contributions are contributions made where:
- An employee has influence over the level of contributions paid by their employer, such as in a salary sacrifice arrangement, where contributions exceed the minimum superannuation guarantee contributions paid by an employer or
- Contributions that exceed the minimum level required under the Superannuation Guarantee Act 1992, an industrial agreement, a superannuation fund governing deed, Federal, State or Territory Law, such as employment contracts that offer a higher level of superannuation contributions than required under superannuation guarantee.
RESC must be reported on PAYG payment summaries and included in an individual's annual income tax return.
RESC are not treated as assessable income, however, they may influence an individual's obligations and entitlement to:
- Medicare levy surcharge
- Senior Australian Tax Offset
- Higher Education Loan Program and Student Financial Supplement Scheme repayments
- Pensioner tax offset and
- Mature age offset.
Employers may also want to take a look at this useful page on our website Superannuation guarantee payments checklist for employers.
