Below is a list of 10 Quick facts regarding Employer Superannuation Contributions Tax. This should be used as a guide only – all tax matters should be discussed with a professional tax adviser.
- Employer Superannuation Contributions Tax is a tax levied on all contributions made by an employer on behalf of an employee.
- Contributions made by an employer into a superannuation account for an employee are referred to as Concessional Contributions.
- The current Employer Superannuation Contribution Tax rate is 15%.
- An Employer Superannuation Contribution of $10,000 would generally result in a net amount of $8,500 being applied to your superannuation member balance.
- The remaining 15% of the $10,000 would be provisioned for and paid in tax.
- Exceeding the Concessional Contribution cap (updated caps here 2017/2018) would result in the excess amount being taxed at your Marginal Tax Rate (plus an interest charge).
- Excess Concessional Contributions will count towards your Non-Concessional Contribution cap
- You can access up to 85% of your excess Concessional Contribution (allowing for Contributions Tax) from your superannuation fund
- These released contributions will not count towards your Non-Concessional Contributions cap
- Employer Superannuation Contribution Tax will be deducted from the superannuation account that you have nominated to receive contributions into.
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.
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How to Manage Your Super Without Paying a Financial Adviser
Download our 6-step checklist & take control of your super
