Show download pdf controls
  • Contributions made under super fund rules or a law

    If you have to make contributions for an employee based on an amount set by a law, or by their super fund's rules or trust deed, those contributions are not reportable employer super contributions. This is the case even if the amount you must contribute is greater than the minimum super guarantee amount.

    Contributions to a defined benefit fund

    Employer super contributions to a defined benefit fund for employees with defined benefit interests are generally not reportable employer super contributions.

    This is because the amount you must contribute for defined benefit members is usually decided by the fund's actuary, not your employee, and are set to meet the liabilities of the defined benefit members as a whole.

    However, if your employee can elect for you to make extra contributions to their account from their pre-tax income, these extra amounts will be reportable employer super contributions.

    If your employee also has an accumulation account in the defined benefit fund (or any other fund) and you make extra contributions to that account for your employee, these will be reportable employer super contributions.

    Example: Contributions to a defined benefit fund

    Indira works for a large company and is a member of a defined benefit super fund. She accrues benefits that increase with her length of service. The company makes contributions to the fund according to the fund rules. These employer contributions are worked out by the fund's actuary.

    The amount the company must contribute to the fund, as decided by the fund's actuary, is not a reportable employer super contribution as Indira has no influence over, or choice about, this amount.

    Indira can choose to contribute up to 5% extra from her pre-tax income, and decides to do so. The extra contribution goes to her account within the defined benefit fund. This extra amount is a reportable employer super contribution and must be reported on Indira's payment summary.

    End of example

    Next step:

      Last modified: 27 Jul 2016QC 21716