Back

Reportable Employer Superannuation Contributions


Sunday 01 April 2018

What are Reportable Employer Superannuation Contributions?

Reportable Employer Superannuation Contributions (RESC) include contributions made by an employer that exceed mandated levels and which the employee can influence. RESC generally includes salary sacrifice superannuation and other voluntary employer contributions.

However, contributions to superannuation that are required by an industrial instrument or rules of a superannuation fund are excluded from the RESC definition to the extent that the member has no capacity to influence the requirement to make the contribution or the size of the contribution.


What relevance does RESC play?

RESC is included in the income test for certain government benefits, concessions and obligations, including:

  • Spouse contribution tax offset
  • Government co-contribution
  • Low income superannuation contribution tax offset
  • Medicare Levy Surcharge1
  • Seniors and pensioners tax offset1
  • Family tax benefits1
  • Child care benefit1
  • Child support1
  • Higher Education Loan Program (HELP) repayments1

For more information in relation to the income tests for these benefits, concessions and obligations please refer to Macquarie's Big Black Book.


Notification of RESC

Employers are required to notify both their employees and the ATO of the RESC payments made during a financial year.

Employees are notified of the amount of RESC via the annual PAYG payment summary which is generally provided in July each year for the previous income year.


Timing – Contributions counting towards RESC vs the concessional contributions cap

RESC are reported for the income year to which the contribution relates. This may be different from the financial year in which they are received by the super fund.

By contrast, for contribution cap reporting, superannuation funds report the contributions for the income year in which they are received.

This difference in timing is illustrated in the example below.

Example

Martin has a salary sacrifice arrangement with his employer to contribution up to the full concessional contributions (CC) cap of $25,000 in 2017/18 year.

His employer typically makes the contributions after the end of each quarter when superannuation guarantee contributions are due. This means that one of the salary sacrifice contributions will not be paid until July 2018.

Martin’s employer will include the July contribution in its RESC reporting for 2017/18 as the contribution relates to this income year.

However, the July contribution will count towards Martin’s CC cap in the 2018/19 year.


RESC and Constitutionally Protected Funds

Constitutionally protected super funds (CPFs) are generally state government operated schemes that are exempt from federal taxation because of the general constitutional restriction on the Federal Government taxing State Governments.

Prior to 1 July 2017 contributions to a CPF, which if otherwise had been made to a funded taxed super fund would be reported as concessional contributions, were not reported by the CPF and were not counted towards the member’s CC cap. From 1 July 2017, these contributions count towards the CC cap. Irrespective of when the contribution was made these contributions do however fall within the definition of RESC where the employee has been able to influence the contribution (eg salary sacrificed contributions in excess of mandatory requirements).


More information

For contribution cap questions refer to Macquarie’s Contribution Cap Companion.

Find out how we can help


If you'd like to speak to a specialist about how we can help build your business, get in touch.

1 Income test includes Reportable Superannuation Contributions (RSC). RSC includes RESC and personal contributions which are claimed as a tax deduction.

Macquarie Investment Management Limited (MIML) ABN 66 002 867 003 AFSL 237 492 is not an authorised deposit-taking institution for the purposes of the Banking Act (Cth) 1959, and MIML’s obligations do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542. Macquarie Bank Limited does not guarantee or otherwise provide assurance in respect of the obligations of MIML.

This information is provided for the use of financial services professionals only. In no circumstances is it to be used by a potential investor or client for the purposes of making a decision about a financial product or class of products.

The information provided is not personal advice. It does not take into account the investment objectives, financial situation or needs of any particular investor and should not be relied upon as advice. Any examples are illustrations only and any similarities to any readers’ circumstances are purely coincidental.

While the information provided here is given in good faith and is believed to be accurate and reliable as at April 2018, it is provided by MIML for information only. We will not be liable for any losses arising from reliance on this information.

MIML and Macquarie Bank Limited do not give, nor purport to give, any taxation advice. The application of taxation laws to each client depends on that client’s individual circumstances. Accordingly, clients should seek independent professional advice on taxation implications before making any decisions about a financial product or class of products.

Except for Macquarie Bank Limited ABN 46 008 583 542 AFSL and Australian Credit Licence 237502 (MBL), any Macquarie entity referred to on this page is not an authorised deposit-taking institution for the purposes of the Banking Act 1959 (Cth). That entity’s obligations do not represent deposits or other liabilities of MBL. MBL does not guarantee or otherwise provide assurance in respect of the obligations of that entity, unless noted otherwise.

Important Information

Restricted to financial services professionals

This information on this website is provided for the use of financial services professionals only. In no circumstances is it to be used by a potential investor for the purposes of making a decision about a financial product or class of products.

In order to proceed, please confirm that you are a financial services professional by clicking 'I accept'.