Directed termination payments
The concessional treatment of directed termination payments was a transitional measure that ended on 30 June 2012.
If you receive payments from employers after this date that purport to be directed termination payments, report the entire payment as a personal contribution.
If you contact the member or their employer and decide the contribution was made in error – that is, in the belief that directed termination payments could still be made – you can decide not to accept the contribution (and therefore not report it).
Allocations from reserves
From 7 December 2024, unless specified as an exclusion, allocations from reserves are reported as non-assessable amounts.
These allocations count towards the non-concessional contributions cap of the member.
Some exclusions include but are not limited to:
- certain assessable contributions such as allocations in lieu of employer contributions
- fair and reasonable allocations.
Example: non-assessable allocations from a fund's reserves
A trustee of a fund is required to make remediation payments to certain fund members. They perform a remediation exercise and allocate $150,000 from the fund's reserves to 100 separate member’s accounts.
The fund reports for each member a non-assessable amount transferred from reserves of $1,500.
End of exampleAllocations in lieu of employer contributions
An allocation from a reserve in lieu of an employer contribution is generally:
- reported as an assessable amount
- not reported as an employer contribution.
To calculate the amount to be reported, multiply the employer contribution (before 15% tax is applied) by 1.176. This will reflect the employer contribution that would have been required to fund the amount actually allocated. However, this 'grossing-up' method results in a reporting requirement that does not precisely reflect the equivalent contribution that an employer would have made.
Application of these regulations is a complex matter. You should obtain advice from suitably qualified people.
Example: allocations from a fund's reserves
A trustee of a fund allocates $8,500 from the fund's reserves to a member’s account. This is 15% less than the $10,000 that the member's employer might otherwise have contributed.
The fund reports for the member an assessable amount transferred from reserves of $9,996 ($8,500 × 1.176). This is not the amount of the allocation ($8,500) and not precisely the amount of the equivalent employer contribution ($10,000).
End of exampleFor more exclusions, see Income Tax Assessment Regulations 1997 (ITAR) regulation 292-90.02.
Contributions that can't be reported in any fields
Other concessional and non-concessional contributions received for the member that can't be reported in any other fields may include contributions (according to the ordinary meaning in Taxation Ruling TR 2010/1 Income tax: superannuation contributions) that are not reported elsewhere.
Currently, there are no other amounts that we consider fit these categories. Providers should lodge a request using the Super Enquiry Service before using these fields.
Read the protocol and MATS Business Implementation Guide (BIG) (DOCX, 426KB)External Link carefully and only use these fields when there is genuinely no other fields applicable.