Employer superannuation contribution tax is payable on all contributions made by your employer into your superannuation account.
You see, employer contributions are classified as Concessional Contributions.
A contribution is classified as a Concessional Contribution if the contributor claims a tax deduction.
In the case of Employer Superannuation Contributions, tax will always be payable because the employer will always claim a tax deduction.
Employer Superannuation Contribution Tax Rate
The Contributions Tax rate on Concessional Contributions is 15%.
This means that the amount contributed by your employer will be reduced by 15% prior to being allocated to your account. So, if your employer made a contribution of $1,000, only $850 would be allocated to your member balance.
However, if you have a Self Managed Superannuation Fund, the Superannuation Contribution Tax would not usually need to be paid until the administrator of your SMSF had completed the tax return for the Fund, unless an allowance was being made via installment payments.
A Contributions Tax surcharge applies to high income earners.
Types of Employer Superannuation Contributions
Employer Superannuation Contributions that incur tax could include:
- SG Contributions
- Salary Sacrifice Contributions
- Other Contributions made as part of you Employment Arrangement
If you are over age 65, you do not need to meet the Work Test (as detailed in this article) to receive mandated employer contributions.
Read this article for further information on Contributions Tax.
If you would like anything clarified or have any further questions about Employer Superannuation Contribution Tax or any other topics, please do not hesitate to leave a comment in the section below and I will endeavour to respond within 24 hours.