Super Guarantee %
The Super Guarantee % is set to increase from 10.5% to 11.0% for Payrolls paid from 1 July 2023.
Tax Deductions for Employer Superannuation contributions
Superannuation contributions are an allowable deduction on the date paid.
Superannuation Guarantee contributions must be paid before the 28th of the month after the quarter end to be an allowable deduction.
SG Quarter is based on the date a Pay Run is paid and determines the SG Due Date for contributions;
1 July - 30 September (due by 28th October)
1 October - 31 December (due by 28th January)
1 January - 31 March (due by 28th April)
1 April - 30 June (due by 28th July)
Keeping in mind that the ATO now has both Single Touch Payroll reporting information and Super contribution details, it is expected that the ATO will be reviewing compliance with these dates more closely.
Year End Superannuation considerations
Review payment dates for Pay Runs for a period ending on or before 30 June but normally paid after 30 June. Moving the payment date to 30 June will bring the expense into the tax year ended 30 June and can mean a lower Superannuation Guarantee rate is applied.
If June quarter superannuation contributions are made before the end of June they can be a tax deduction in the current tax year. Some Superfunds have cut off dates for processing of contributions at year end, so it would be worth checking the cut off dates for your method of superannuation contributions.
Deductions for Personal Superannuation Contributions
You can claim a tax deduction for contributions to superannuation of up to $27,500 if you meet the eligibility rules regarding the fund, your age and notice given to the fund.
If employers have made Superannuation contributions to your super, the $27,500 limit is effectively reduced by the amount of those contributions. Contributions need to be made before 30 June to qualify as a deduction.
If you have not contributed the full annual limit of concessional contributions in the past, you may also be able to use the carried forward unused contributions limits in the current year. There are a number of conditions to meet to qualify, but your Tax Agent can guide you through this if required.
Government Superannuation Co-contributions for Individuals
A government co-contribution of superannuation is available to low or middle income earners who make personal superannuation contributions, up to $500.
The personal superannuation contribution must be made before 30 June and the government co-contribution will be determined by the amount of your income and personal superannuation contributions.
The Super Guarantee % is set to increase from 10.5% to 11.0% for Payrolls paid from 1 July 2023.
Tax Deductions for Employer Superannuation contributions
Superannuation contributions are an allowable deduction on the date paid.
Superannuation Guarantee contributions must be paid before the 28th of the month after the quarter end to be an allowable deduction.
SG Quarter is based on the date a Pay Run is paid and determines the SG Due Date for contributions;
1 July - 30 September (due by 28th October)
1 October - 31 December (due by 28th January)
1 January - 31 March (due by 28th April)
1 April - 30 June (due by 28th July)
Keeping in mind that the ATO now has both Single Touch Payroll reporting information and Super contribution details, it is expected that the ATO will be reviewing compliance with these dates more closely.
Year End Superannuation considerations
Review payment dates for Pay Runs for a period ending on or before 30 June but normally paid after 30 June. Moving the payment date to 30 June will bring the expense into the tax year ended 30 June and can mean a lower Superannuation Guarantee rate is applied.
If June quarter superannuation contributions are made before the end of June they can be a tax deduction in the current tax year. Some Superfunds have cut off dates for processing of contributions at year end, so it would be worth checking the cut off dates for your method of superannuation contributions.
Deductions for Personal Superannuation Contributions
You can claim a tax deduction for contributions to superannuation of up to $27,500 if you meet the eligibility rules regarding the fund, your age and notice given to the fund.
If employers have made Superannuation contributions to your super, the $27,500 limit is effectively reduced by the amount of those contributions. Contributions need to be made before 30 June to qualify as a deduction.
If you have not contributed the full annual limit of concessional contributions in the past, you may also be able to use the carried forward unused contributions limits in the current year. There are a number of conditions to meet to qualify, but your Tax Agent can guide you through this if required.
Government Superannuation Co-contributions for Individuals
A government co-contribution of superannuation is available to low or middle income earners who make personal superannuation contributions, up to $500.
The personal superannuation contribution must be made before 30 June and the government co-contribution will be determined by the amount of your income and personal superannuation contributions.