Superannuation Fund Expenses Paid by an Employer

Last updated June 2011

The Taxation Office has confirmed that if an employer pays expenses on behalf of a superannuation fund (e.g. administration fees), those payments will be regarded as contributions paid to the members of that fund.

This is fairly common practice, especially for self-employed persons and small business operators who have their own self managed superannuation fund. It is considered acceptable provided the relevant journal entries are made in a timely manner to establish a record of the contribution and fund expense.

WARNING: As these amounts are employer contributions, they are regarded as concessional contributions. It is important to take these into account when determining whether a member's concessional contribution threshold has been breached.