Salary Sacrifice - Superannuation

Note: - in Phase 2 Gross Amount must include the pre-Salary Sacrifice amount

Salary Sacrifice into a complying superannuation fund can be complex - please consult with your tax adviser about correct treatment. The information below is of a general nature and should be used as a guide only.

Salary sacrificed to a complying superannuation fund cannot be used to reduce OTE or count towards a Payer's minimum superannuation guarantee contributions. Super guarantee contributions should be based on the pre-salary sacrifice amount. Salary sacrifice into superannuation is in most cases Reportable Employer Superannuation Contributions (RESC)

MYOB Users

Salary sacrifice into superannuation is in most cases Reportable Employer Superannuation Contributions (RESC). There might be instances where this is not the case - discuss with your tax adviser.

There are 2 new STP Fields in Phase 2 for salary sacrificed into a complying superannuation fund:

• SalSacTypeS and RESC (Field ID 58) - use this unless advised by your tax adviser that the Salary Sacrifice is not RESC.
• SalSacTypeS and Not RESC (Field ID 59)

Where a payroll category is mapped to SalSacTypeS and RESC, the amount will automatically be reported as RESC. Where a payroll category is mapped to SalSacTypeS and Not RESC, the amount will not be automatically reported as RESC.

See example below for how to map a payroll category for Salary Sacrifice to a complying Superannuation fund:

The salary sacrifice amount will be included in Gross Amount, however will be excluded from the W1 amount.

Non-MYOB Users

Select the relevant STP Fields here. These would include SalSacType S and RESC (Field ID 58) and Reportable Employer Super Contributions (Field 77)

On the Assemble Income Statement Data (YTD) screen, manually add or import YTD data indicating the YTD amount for each Payee against each STP Field. GrossAmount should include the Pre Salary Sacrifice amount. SalSacType S and RESC should include the sacrificed amount as a positive amount. The ATO will net the salary sacrificed amount against the Gross Amount when calculating taxable income.

For example if a Payee's pre-salary sacrifice amount for the year to date was $80,000, PAYG amount was $12,000, SGC was $840 and $6000 was sacrificed for into a complying super fund, the Assemble Income Statement Data (YTD) amounts would be as follows:

GrossAmount $80,000

PAYGAmount $12,000

SuperAmountSG $840

SalSacType S and RESC $6,000    

RESC $6,000