Changes to Reporting Superannuation on PAYG summaries and how that may affect you

Dated: June 2009

From 1 July 2009 certain contributions to your superannuation fund will have to be reported on your PAYG summary (group certificate) in addition to the usual details (income, allowances, tax deducted etc). These contributions will also be reported commencing with the 2009/2010 income tax return.

The super contributions that must be listed are the total of your:

1. reportable employer super contributions, plus
2. personal deductible contributions.

Generally speaking, reportable employer super contributions are contributions your employer makes over and above the minimum amount they are required to contribute under your relevant award, law or industrial agreement. It includes salary sacrifice amounts and other arrangements you enter into that have the effect of increasing the amount of superannuation they contribute on your behalf.

Personal deductible contributions include the total of any personal contributions you make to a super fund for which you can claim an income tax deduction on your individual tax return.

These amounts may alter the amount of tax you will have to pay as they will affect various tax calculations including:

• Medicare levy surcharge threshold calculation
• Medicare levy surcharge (lump sum payment in arrears) tax offset
• Dependency tax offsets
• Senior Australians tax offset
• Pensioner tax offset
• Mature age worker tax offset
• Spouse superannuation contributions tax offset
• Government super co-contribution
• Deduction for personal superannuation contributions
• Higher Education Loan Programme and Student Financial Supplement Scheme repayments.

From 1 July 2009 Centrelink will also include these reported amounts as income when calculating your entitlement to a range of benefits including the Family Tax Benefit. The Family Assistance Office will likewise be taking them into account when calculating the amount of Child Support to pay.

Therefore, if you have arrangements in place that will be reportable from 1 July 2009 it may be a prudent time to review them.

For more information go to:
http://www.ato.gov.au/print.asp?doc=/content/00189411.htm
http://www.ato.gov.au/print.asp?doc=/content/00189189.htm