What employer superannuation contributions should be included on Payment Summaries for Retirement Scheme members?
In response to a number of employer enquiries, Active Super has sought legal advice about what employer superannuation contribution amounts should be reported on Payment Summaries for Retirement Scheme members.
The four types of contributions considered were:
Member salary sacrifice (pre-tax) contributions of between 1% and 9% for the purchase of benefit points
Other member salary sacrifice amounts
Basic Benefit contributions and employer contributions relating to Category 1 contributions
The additional employer contribution of 8.5% of superable salary made for members who have already reached 180 benefit points.
Section 16 - 155(1) (d) of Schedule 1 to the Taxation Administration Act requires the employer to include in the Payment Summary reportable employer super contributions as defined in section 16-182(1).
The section 16-182(1) definition applies to amounts where the amount contributed by the employer is for the individual's benefit and either the individual has the capacity to influence the size of the amount or the way the amount is contributed.
For this reason Category 1 and 2 contributions need to be reported on Payment Summaries as the member has control over the size of the contributions and the way they are contributed.
Category 3 and 4 contributions are not reportable as the member has no control over this type of employer payment.
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Active Super has engaged Industry Fund Services Limited (ABN 54 007 016 195) (AFSL No 232514) (IFS) to facilitate the provision of financial advice to members of Active Super. Advice is provided by one of IFS’ financial planners who are Authorised Representatives of IFS. Fees may apply. Further information about the advice services that can be provided is set out in the relevant Financial Services Guide, a copy of which is available for download at www.activesuper.com.au or by calling 1300 547 873. IFS is responsible for any advice given to you by its Authorised Representatives.