Superannuation contributions

Superannuation contributions include:

• monetary contributions (e.g. cash payments, electronic transfers)
• non-monetary contributions (e.g. marketable securities, property, forgiveness of loans). If you include a non-monetary contribution in your taxable wages, you must provide evidence of the value if we ask for it.

Taxable contributions

Taxable contributions include those paid or payable:

• to a superannuation fund
• to another form of superannuation, provident or retirement fund or scheme
• as a superannuation guarantee charge (including nominal interest and administration charges)
• as salary sacrifice arrangements
• as lump sum payments
• to past employees who no longer work for the employer.

Certain additional superannuation guarantee charges (i.e. general interest and penalty charges) are not taxable. See Public Ruling PTA030—Penalty charges under superannuation guarantee charge for more information.

Types of superannuation funds/schemes

• Employer-sponsored funds
• Industry funds
• Personal superannuation funds
• Defined benefit funds
• Defined contribution funds
• Wholly or partially unfunded funds or schemes
• Retirement saving accounts
• Superannuation holding accounts reserve (pre-July 2006)

Defined benefit schemes

Under these schemes, the employer must contribute an amount sufficient to guarantee a defined benefit to the employee. 

A short-term contributions holiday may be granted if the fund has sufficient assets to meet the employee benefits without any further employer contributions. This is determined by an actuarial review.

During this period, no payroll tax is payable because the employer is not making any contributions. However, once contributions resume, payroll tax will apply again.

Any top-up contributions that are needed to meet employee benefits are taxable. This is because they are considered to be additional contributions.