Understanding Reportable Superannuation Contributions

If you live and work in Australia, you’ve definitely heard of superannuation. But, while we’re all familiar with superannuation as part of a salary package, many of us don’t understand the different types of superannuation or our reporting obligations as employers and employees.

So, if you’re unsure about reportable superannuation contributions, you’ve come to the right place. In this article, we’ll explore exactly what is a reportable superannuation contribution, the different types of reportable superannuation contributions, and how to report them.

What are reportable superannuation contributions?

Reportable superannuation contributions is an umbrella term for a few different kinds of super contributions that employers must report to the Australian Taxation Office (ATO). These are voluntary contributions made by an employer or employee in addition to the standard Superannuation Guarantee.

Failing to accurately declare reportable employer super contributions can lead to tax penalties as well as time-consuming payroll complications. So, understanding what is a reportable superannuation contribution is key to staying compliant and efficient.

Types of reportable super contributions

There are different types of reportable superannuation contributions, including salary sacrifice and personal deductible contributions. 

Essentially, any extra super contributions made as part of an employee’s salary package or pre-tax contributions made to an employee’s super fund must be reported to the ATO.

Salary sacrifice contributions

Salary sacrifice super contributions are pre-tax payments that an employee agrees to have deducted from their regular wages and paid into their super fund.

The benefits of this include:

• Lower Income Tax: Contributions are made from your pre-tax salary, reducing your taxable income.
• Lower Super Tax Rate: Instead of being taxed at your marginal tax rate (which can be up to 47% for high earners), salary sacrifice contributions are taxed at 15%.
• More Money in Your Super: Since more of your salary goes into super at a lower tax rate, you grow your retirement savings faster.
• Compounding Growth: Earnings inside super are taxed at a concessional rate (max 15%), helping your super balance grow more efficiently over time.
• Avoids Excess Tax on Extra Income: If you get a pay rise, bonus, or extra income, salary sacrificing can help reduce the tax impact.
• Can Improve Eligibility for Government Benefits: This includes Family Tax Benefit, the Childcare Subsidy, and other Centrelink payments.
• Can Reduce HECS-HELP Repayments: Because salary sacrificing lowers taxable income, compulsory student loan repayments may be reduced.

Personal deductible contributions

Personal deductible contributions are voluntary contributions employees can make to their super fund from their after-tax income, which they can then claim as a deduction on their income tax return.

The benefits of this include:

• Tax Savings: It reduces your taxable income, which could lower your overall tax bill at the end of the financial year.
• Boosts Super Savings: It helps grow your retirement savings faster.
• Flexibility: Unlike salary sacrifice (which must be arranged in advance with your employer), you can make lump sum contributions anytime before the end of the financial year.

Personal deductible contributions are also useful for self-employed people, allowing them to contribute to their super fund as and when they wish while still getting the tax benefits.

Additional reportable employer superannuation contributions

As a general rule, most pre-tax contributions made on top of the standard Superannuation Guarantee are reportable superannuation contributions. This includes matched contributions, but only if it’s under an individual contract as opposed to a collectively negotiated industrial agreement.

Let’s take a look at an example of a matched contribution for an individual contract.

Sarah is a senior software engineer at a private tech company. Her employee contract states that the employer will match any voluntary salary sacrifice or personal deductible contributions up to 3% of her base salary. This is in addition to the compulsory Superannuation Guarantee.

Sarah’s Salary & Contributions:

• Sarah earns $100,000 per year before tax.
• She decides to salary sacrifice 3% of her salary ($3,000) into her super.
• Under the matching agreement, her employer also contributes an extra $3,000.

Total Super Contributions:

• Employer Superannuation Guarantee (12%): $12,000
• Sarah’s Salary Sacrifice (3%): $3,000
• Employer Matched Contribution (3%): $3,000

Total Super Contribution: $18,000

In this scenario, Sarah’s additional superannuation contributions must be reported to the ATO. 

Types of non-reportable superannuation contributions

Not all super contributions need to be reported. This is because the ATO only requires certain contributions to be declared for tax, benefit, and contribution cap purposes. 

Compulsory superannuation guarantee (SG) contributions

Superannuation Guarantee payments are not reportable because they are paid as part of the standard employment contract. These mandatory contributions are already accounted for in an employee’s income tax return and therefore don’t need to be reported to the ATO separately.

The standard Superannuation Guarantee rate in Australia for FY25-26 is currently 12% of an employee’s ordinary earnings. These ordinary earnings include salary, wages, bonuses, commissions, and certain allowances, but not overtime pay or employment-related expenses.

It is the employer’s responsibility to pay the Superannuation Guarantee. This must be paid at least quarterly, but many employers choose to pay it more frequently in line with their regular payroll. 

If an employee has specified a superannuation fund, the employer must pay all super into said fund. If no fund has been selected, an employer can choose their preferred fund.

After-tax (non-concessional) contributions

Non-concessional super contributions are voluntary payments made to a superannuation fund using money that has already been taxed. These contributions are not deducted from an employee’s taxable income and therefore don’t need to be reported to the ATO.

Non-concessional contributions are untaxed and, as of 2025, are capped at $120,000 per year. If this cap is exceeded, any additional contributions will be taxed at 47%.

Why accurate reporting of superannuation contributions matters

Understanding super contributions and tax obligations is essential for both employers and individuals.

For employers 

For employers, accurately declaring reportable superannuation contributions is crucial for many reasons, including:

• Legal Compliance: Failure to report and pay superannuation contributions correctly can lead to significant penalties and interest. Employers who don’t report accurately may also be subject to additional audits by the ATO.
• Employee Retention and Trust: Inaccurate or late contributions can cause admin headaches and tax implications for employees, leading to frustration and lack of trust.
• Contribution Caps and Tax Efficiency: Inaccurate reporting of salary sacrifice or other voluntary contributions could result in employees exceeding the caps and facing additional tax charges.
• Administrative Efficiency: Fixing reporting mistakes can be time-consuming and costly. 

For individuals

For individuals, reportable superannuation contributions can impact several financial and tax-related matters, including:

• Government Benefits & Payments: Reportable superannuation contributions are included in income tests for benefits like Family Tax Benefit, Child Support, and Centrelink payments.
• Tax Implications:  Reportable superannuation contributions count toward your concessional super cap. Failing to report them accurately can lead to accidentally exceeding the cap, resulting in extra taxes.
• Borrowing & Financial Assessments: Lenders may consider reportable superannuation contributions when assessing your income for loans or mortgages, which could affect your borrowing capacity.
• Workplace Agreements & Salary Packaging: If you use salary sacrifice, reportable superannuation contributions help ensure your contributions are structured correctly and don’t accidentally reduce other entitlements like overtime or leave calculations.

How to report superannuation contributions

Employees, employers, and self-employed individuals need to declare all reportable superannuation contributions to the ATO.

For employers

Employers must declare all reportable superannuation contributions via the Australian government’s Single Touch Payroll. Reportable superannuation contributions must be declared to the ATO when the payment is made, whether that’s monthly or quarterly. 

Employers must also ensure that employees are aware of the super contributions made, providing a pay slip or superannuation statement that details their super contributions and ensures clarity regarding which contributions are reportable. This information should also be included on the employee’s annual payment summary and group certificate.

For employees

Your employer is legally obliged to report your super contributions to the government whenever payments are made. But, it’s also your responsibility to make sure that this information is correct.

There are a few things you can do to ensure your superannuation payments are reported correctly, including:

• Checking Pay Slips: You should regularly check your pay slips to ensure that super contributions have been made correctly. Pay slips should include the total amount of superannuation paid for the period, any salary sacrifice contributions, and the super fund’s details.
• Keeping Track of Contributions: Track your contributions regularly throughout the year, keeping records of all payments in a safe place so you have all the information you need when filing your tax return at the end of the year.
• Notifying the Superannuation Fund of Tax Deductions: If you intend to claim a tax deduction for personal contributions, you must inform your super fund and obtain written confirmation that it’s eligible to be deducted. You must also include this information in your annual tax return.
• Checking Your Annual Superannuation Statement: At the end of the financial year, you’ll receive an annual superannuation statement from your superannuation fund. This document will outline the total contributions. You should carefully review this statement to ensure all contributions are correctly accounted for and match your pay slip records.
• Reporting on Your Tax Return: When filing your annual tax return, make sure you include all reportable superannuation contributions.

Make payroll easy using QuickBooks

Staying on top of your reportable superannuation contributions is easy when you have the right payroll software. With QuickBooks Single Touch Payroll solution, you can eliminate manual data entry, minimise reporting errors, and maximise productivity.

This ATO-approved system automates tax reporting with every pay run and comes with built-in STP compliance. So, whether you have 5 employees or 50, you can relax knowing that your tax and super reporting is sorted.

Start your free 30-day QuickBooks trial now or get in touch with our friendly team for more information about our Single Touch Payroll software.