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  • Matching contributions

    If a matching employer contribution is compelled by a collectively negotiated industrial agreement it's not a reportable employer super contribution, even though it's triggered by an employee choice. However, matching contributions under individual contracts are reportable because the employee was able to directly influence the terms of the agreement.

    Example: matching contribution triggered by collective agreement

    Rodger's employer is required under an industrial agreement to make an additional employer contribution for Rodger's benefit. The agreement allows for Rodger to elect to contribute 0%, 5% or 8% of his salary as a personal after-tax contribution. His employer is required to contribute 9.5%, 11.5% or 13% respectively, based on Rodger's election under the industrial agreement. Rodger elects to contribute 8% as a personal after-tax contribution, and his employer contributes 13% super as the employer contribution.

    None of the amounts the employer contributes are reportable employer super contributions because the additional employer contributions are compelled by the industrial agreement. Additionally, none of Rodger's personal after-tax super contributions are reportable employer super contributions because they are already included in Rodger's assessable income.

    End of example


    Example: Matching contributions triggered by individual agreement

    Charlotte has an individual common law employment contract that she negotiated with her employer. Under the contract, if she elects to make 5% personal super contributions this would be matched with a 2% contribution from her employer (in addition to the amount her employer already contributes for Charlotte to comply with super guarantee obligations).

    Charlotte decides to make a 5% after-tax contribution to super. This personal contribution is not a reportable employer super contribution because it's part of Charlotte's assessable income. However, the additional 2% employer super contribution is a reportable employer super contribution because Charlotte had the capacity to influence the terms of the contract requiring her employer to make the additional employer contributions.

    End of example

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      Last modified: 29 Oct 2019QC 21716