What are reportable superannuation contributions?
If you or your employer pays extra money into your superannuation account, you may be required to report that to the Australian Taxation Office (ATO). We take a look at what reportable superannuation contributions are, and who is responsible for declaring them.
Superannuation is money that’s put aside in a superannuation fund, designed to help fund your retirement. Your employer is required to pay a certain amount into your nominated super fund, as part of the Superannuation Guarantee provisions.
However, it is possible for your superannuation balance to be boosted by other types of contributions, such as extra payments made by you or your employer. In some cases, these extra payments are known as “reportable employee super contributions” (RESC), which means that they have to be reported to the ATO.
Understanding different types of super contributions, and how they are considered by the Australian Taxation Office (ATO), can be helpful for employers and employees when working out what needs to be reported.
What are reportable employer super contributions?
Reportable employer super contributions (sometimes shortened to RESC) are super contributions made by your employer over and above legislative requirements in Australia that need to be reported to the ATO.
According to the ATO, reportable super contributions include any contributions to your superannuation when both of these criteria apply:
- an employee influences the rate or amount of super a company contributes for them
- the contributions are additional to the compulsory contributions a company must make under the Superannuation Guarantee; a collectively negotiated industrial agreement; the rules of a super fund; or a federal, state or territory law.
Examples include additional contributions as part of an individual’s salary package, extra money that’s put into super through salary sacrificing, and pre-tax super contributions, like putting an annual bonus into your super account.
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Sponsored or Promoted products table
- Sponsored or promoted products that are in a table separate to the comparison tables in this article are displayed from lowest to highest annual cost.
- Performance figures shown for Sponsored or Promoted products reflect net investment performance, i.e. net of investment tax, investment management fees and the applicable administration fees based on an account balance of $50,000. To learn more about performance information, click here.
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Reportable vs non-reportable employer super contributions
Most workers are eligible for the Superannuation Guarantee (SG), which means that employers must pay 9.5% of an employee’s earnings into their super account if they earn at least $450 before tax in a calendar month, regardless of whether they work full-time, part-time or casually.
This is considered a non-reportable contribution. Other non-reportable super contributions include compulsory super contributions required by national, state or territory law in Australia, or by a super fund’s governing rules, as well as any contributions made under collectively negotiated industrial agreements. These are all forms of non-concessional (after-tax) contributions.
According to the ATO, any non-concessional (after-tax) contributions you make are not reportable because that money has already been subject to tax.
Concessional contributions are those made before any tax has been applied. Examples of this type of contribution includes salary sacrifices, which is where money is taken from a person’s salary before income tax has been applied and is then added to their super fund.
These types of contributions must be reported to the ATO, which will determine if tax needs to be applied.
Here are some common examples of superannuation contributions that are either generally reportable, or generally not reportable, for Australian employees.
The ATO gives these examples on a general basis only. It may be suitable, based on your personal needs and requirements, to seek professional advice relating to your tax if you have further questions.
Related: What are concessional contributions?
How do reportable employer super contributions impact Australians?
According to the ATO, reportable super contributions affect the income tests for various tax offsets, deductions, concessions, the Medicare levy surcharge, and certain government benefits and obligations.
This includes Higher Education Loan Program (HELP) and Student Financial Supplement Scheme (SFSS) repayments, tax offsets for a variety of super contributions, the entrepreneurs’ tax offset and wider benefits from Services Australia, including for Centrelink and child support.
An employee’s reportable super contributions amount is also considered with several offsets that impact many older Australians, such as the pensioner tax offset, mature age worker tax offset and senior Australians tax offset. It could be a wise idea to seek professional financial advice about super contributions.
What do employers and employees need to do about reportable employer super contributions?
Employers, employees and both investors and business operators have various obligations with reportable employer super contributions (RESC).
The ATO publishes a guide for employees and the self-employed about reportable employer super contributions, as well as a guide for employers about reportable employer super contributions, with more details.
Compare Superannuation with Canstar
The table below displays some of the superannuation funds currently available on Canstar’s database for Australians aged 30 to 39 with a super balance of up to $55,000. The results shown are sorted by Star Rating (highest to lowest) and then by 5 year return (highest to lowest). Performance figures shown reflect net investment performance, i.e. net of investment tax, investment management fees and the applicable administration fees based on an account balance of $50,000. To learn more about performance information, click here. Consider the Target Market Determination (TMD) before making a purchase decision. Contact the product issuer directly for a copy of the TMD. Use Canstar’s superannuation comparison selector to view a wider range of super funds. Canstar may earn a fee for referrals.
- Performance, fee and other information displayed in the table has been updated from time to time since the rating date and may not reflect the products as rated.
- The performance and fee information shown in the table is for the investment option used by Canstar in rating of the superannuation product.
- Performance information shown is for the historical periods up to 31/01/2024 and investment options noted in the table information.
- Performance figures shown reflect net investment performance, i.e. net of investment tax, investment management fees and the applicable administration fees based on an account balance of $50,000. To learn more about performance information, click here.
- Performance data may not be available for some products. This is indicated in the tables by a note referring the user to the product provider, or by no performance information being shown.
- Please note that all information about performance returns is historical. Past performance should not be relied upon as an indicator of future performance; unit prices and the value of your investment may fall as well as rise.
- Any advice on this page is general and has not taken into account your objectives, financial situation or needs. Consider whether this general financial advice is right for your personal circumstances. You may need financial advice from a qualified adviser. Canstar is not providing a recommendation for your individual circumstances. See our Detailed Disclosure.
- Not all superannuation funds in the market are listed, and the list above may not include all features relevant to you. Canstar is not providing a recommendation for your individual circumstances.
- Canstar may earn a fee for referrals from its website tables, and from Sponsorship or Promotion of certain products. Fees payable by product providers for referrals and Sponsorship or Promotion may vary between providers, website position, and revenue model. Sponsorship or Promotion fees may be higher than referral fees. Sponsored or Promotion products are clearly disclosed as such on website pages. They may appear in a number of areas of the website such as in comparison tables, on hub pages and in articles. Sponsored or Promotion products may be displayed in a fixed position in a table, regardless of the product’s rating, price or other attributes. The table position of a Sponsored or Promoted product does not indicate any ranking or rating by Canstar. For more information please see How We Get Paid.
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Performance and Investment Allocation Differences
- Fee, performance and asset allocation information shown in the table above have been determined according to the investment profile in the Canstar Superannuation Star Ratings methodology.
- Some providers use different age groups for their investment profiles which may result in you being offered or being eligible for a different product to what is displayed in the table. See here for more details.
- Australian Retirement Trust Super Savings’ allocation of funds for investors aged 55-99 differ from Canstar’s methodology – see details here.
- The Australian Retirement Trust Super Savings (formerly Sunsuper for Life) product may appear in the table multiple times. While you will not be offered any single investment option, this is to take into account the different combinations of investment options Australian Retirement Trust may apply to your account based on your age. For more detail in relation to the Australian Retirement Trust (formerly SunSuper for Life) product please refer to the PDS issued by Australian Retirement Trust for this product.
- Investment profiles applied initially may change over time in line with an investor’s age. See the provider’s Product Disclosure Statement and TMD and in particular applicable age groups for more information about how providers determine their investment profiles.
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