Claiming tax deductions on super contributions

When you pay your employees’ super, it’s helping to set them up for their retirement. Paying your employees' super is mandatory so it’s something that businesses need to budget for.

The good news is, you are able to claim a tax deduction for any employer contributions you make.

Which employer super contributions can I claim a tax deduction against?

  • Superannuation Guarantee (SG) contributions, if the contribution is made by each quarterly due date. Currently SG is 9.5% (2020/21) of your employees’ respective Ordinary Time Earnings (OTE).  
  • Salary sacrifice contributions. Read more about setting up an effective salary sacrifice arrangement.
  • Any contributions mandated by an industrial award.

Are there contributions I can’t claim against?

Yes. There are some payments that you may make where you can’t claim a tax deduction. These include:

  • The Super Guarantee Charge (SGC), which is the payment you need to make if your employee SG contributions aren’t paid by the due date. Refer to the table below.
  • Contributions to a super fund that isn’t compliant. In these instances, your contributions will be treated as a fringe benefit. If you’re unsure about the fund’s compliance, you can check at the Australian Taxation Office (ATO)’s Super Fund Lookup.
  • Contributions made on behalf of an employee’s spouse. You will need to pay Fringe Benefits Tax on these, and they will need to be reported on your employees’ annual payment summary as a fringe benefit.
  • Personal (after-tax) contributions that an employee requests you make for them via your clearing house.

Important to note

If you use a clearing house other than the Small Business Superannuation Clearing House (SBSHC – administered by the ATO), the date the respective super funds receive SG contributions is the date the contribution is considered to be paid, so it’s worth checking with your clearing house the timeframe they take to distribute SG contributions to ensure you make the quarterly due date.

The exception is if the payment is made to a non-complying super fund, or to someone who is not an employee, in which case they’ll be treated as a fringe benefit.

What are the Super Guarantee due dates?

Quarter

Dates

Deadline for SG contribution

1

1 July – 30 September

28 October

2

1 October – 31 December

28 January

3

1 January – 31 March

28 April

4

1 April – 30 June

28 July

Salary sacrifice is a smart way for your employees to grow their super and reduce their taxable income.

Whether you own a small business or run a big company, BT Super can help you manage your employer super with ease.

Answer a few simple questions to help you check if you’re meeting your business super obligations and doing the right thing for your people. It only takes about 5 minutes.

Our dedicated business super team is here to help you with everything super-related.
Mon-Fri, 8.30am-5.30pm Sydney time

This information is current as at 7 May 2021. 

The information is prepared by BT Funds Management Limited ABN 63 002 916 458 (BTFM) the trustee of:  

(a) BT Super for Life, BT Super for Life Westpac Group Plan and BT Super part of the superannuation fund Retirement Wrap ABN 39 827 542 991; and
(b) Asgard Employee Super Account part of the superannuation fund the Asgard Independence Plan Division Two ABN 90 194 410 365.

BT has not reviewed any awards or other industrial instruments or agreements that are, or may become relevant to your employees. BT Super may not satisfy your obligations under any such award or industrial instrument or agreement. Before making a decision about BT Super, we recommend that you seek legal advice on its appropriateness, having regard to the requirements of any awards or other industrial instruments or agreements that are, or may become applicable.

This information has been prepared as general advice only and does not take into account your personal objectives, financial situation or needs and so you should consider its appropriateness, having regard to your personal objectives, financial situation and needs before acting on it. Read the Product Disclosure Statement (PDS) to see if these products are right for you by visiting bt.com.au or asgard.com.au. Any tax considerations are general statements based on current tax law. You should obtain your own tax advice about your personal circumstances.

QuickSuper is issued by Westpac Banking Corporation (ABN 33 007 457 141, AFSL233714). An offer to issue this product may be made to you by Westpac, subject to completion of the application process. The Product Disclosure Statement (PDS) for QuickSuper is available on the Westpac website. You should consider the PDS before deciding to accept any offer made by Westpac to issue the product.

BTFM is a member of the Westpac Banking Corporation ABN 33 007 457 141 (Westpac) group of companies. An investment in a BTFM product is not an investment in, deposit with or any other liability of Westpac, any division of Westpac or any other company in the Westpac Group. Past performance is not a reliable indicator of future performance. Westpac and its related entities do not stand behind or otherwise guarantee the capital value or investment performance of the product or any related assets of the product.

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