As part of the government's budget measures announced in May
2008 to change the manner in which some income tests are applied
and to remove any inconsistencies in the treatment of salaries that
are not subject to income tax, legislation has been passed to
support these initiatives.
Reportable superannuation contributions include the reportable
employer super contribution and the personal deductible
contributions. Reportable employer super contributions (RESC)
includes amounts contributed by the employer that are under a
salary sacrifice arrangement or employer contributions that are
over the amount required under the super guarantee law, an
industrial agreement, trust deed or governing rules of a super fund
and a federal, state or territory law. Personal deductible
contributions are basically personal contributions made into a
super fund wherein you claim a tax deduction for the
Reportable super contributions will affect the eligibility of
various rebates, tax offsets such as Mature Age Workers Tax Offset,
Medicare Levy Surcharge, Spouse Superannuation Contribution Tax
Offset, Government Super Co-Contribution, Higher Education Loan
Programme, and Pensioner Tax Offset.
Effective from the 1 July 2009, employers are required to report
certain superannuation contributions on the employees' payment
summaries at the end of the income year. These contributions are
known as "Reportable Employer Superannuation Contribution
Part of the definition of a reportable employer super
contribution includes an amount under a salary sacrifice
arrangement. This captures superannuation contributions that would
have been paid as salary or wages to an employee but for the salary
The other part of the definition provides us with a mechanism to
determine whether the contributions are classified as RESC or not.
Therefore, employer contributions under the superannuation
guarantee law wherein 9% is contributed would not be included in
the definition. However, when the employer makes a contribution
above the 9% rate but the employee could not influence this
decision, then the contribution is not classified as a RESC. On the
other hand, if the employee is able to influence the decision of
the employer to use a rate that is over the 9% rate required under
the SG law, then the amount in excess of the 9% required under
superannuation guarantee is classified as a RESC.
In summary, amounts that are most likely to be excluded from the
being a RESC, are all employee after tax contributions,
contributions required by a Commonwealth, State or Territory law
and contributions to a defined benefit fund in accordance with an
Amounts that are most likely to be included as RESC include all
superannuation contributions under a salary sacrifice arrangement,
any contribution where the employee could choose between the
pre-tax and post-tax amount of their gross wage and any
contribution where the employee could influence the rate of
contribution that is required under various laws.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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Exemptions or concessions on stamp duty could apply when contemplating the purchase or transfer of NSW real estate.
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