What is reportable employer super contributions on my tax return?
Reportable Employer Super Contributions (RESC) are additional super contributions your employer makes on your behalf beyond the Superannuation Guarantee. They are included on your income statement and counted in various income tests for government benefits and obligations, though generally not subject to Fringe Benefits Tax (FBT).
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How it works in practice
What are Reportable Employer Super Contributions (RESC)?
Reportable Employer Super Contributions (RESC) are specific superannuation contributions made by your employer on your behalf that are above the compulsory Superannuation Guarantee (SG) amount. These typically arise from salary sacrifice arrangements, where you agree to forgo a portion of your pre-tax salary in exchange for your employer contributing that amount to your super fund. They can also include additional employer contributions specified in enterprise agreements or individual contracts, provided they are not subject to Fringe Benefits Tax (FBT).
Why are RESC Important?
While RESC are not included in your taxable income and are taxed at a concessional rate within your super fund (15% for most people), they are reported on your income statement or payment summary. This is because the Australian Taxation Office (ATO) uses your total income, which includes RESC, to determine your eligibility for various government benefits and tax offsets, such as the Medicare levy surcharge, Family Tax Benefit, Higher Education Loan Program (HELP) repayments, and the super co-contribution. Therefore, understanding your RESC is crucial for accurate financial planning and tax assessments.
Important exceptions
RESC do not include your employer's compulsory Superannuation Guarantee contributions, nor do they include any super contributions that were subject to Fringe Benefits Tax (FBT). They also do not include personal super contributions you make from your after-tax income, unless you claim a tax deduction for them. The impact of RESC can vary significantly based on your total income and eligibility for different government payments or obligations. Always review your specific situation and consult the ATO or a financial advisor for personalised advice.
What you should do now
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Review your income statement or payment summary for the 'Reportable Employer Super Contributions' amount.
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Understand that RESC are different from your taxable income but are still counted for various government income tests.
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Calculate how your RESC might affect your eligibility for benefits like Family Tax Benefit or government super co-contribution.
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Consider the impact of RESC on your Higher Education Loan Program (HELP) repayments or the Medicare levy surcharge.
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Seek professional tax or financial advice if you are unsure how RESC apply to your individual circumstances.
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