Salary packaged superannuation contributions can only be paid to your own superannuation account (they cannot be paid to a spouse account).
A contribution tax of 15% applies to pre-tax super and is normally collected by the superannuation fund directly from the contribution amount.
The Australian Taxation Office sets annual pre-tax contribution limits each financial year (1 July to 30 June). These limits apply to amounts contributed by your employer under the Superannuation Guarantee Scheme as well as salary packaged superannuation amounts.
In the 2017/18 financial year the concessional superannuation contribution limit is $25,000 for all individuals, which can be contributed at any time during the 2017/18 financial year.
If you exceed the annual limit, your contributions will be taxed at your marginal rate (with a credit for the 15% already paid on the way in).
Salary packaged superannuation contributions generate a Reportable Superannuation Amount (RSA) which will be reported on your annual Payment Summary and which may affect other statutory or legal entitlements and obligations, including HELP/HECS repayments and Child Support (see below for more details).
Reportable superannuation amounts
Packaging superannuation will result in a Reportable Superannuation Amount (RSA) on your annual PAYG Payment Summary.
RSAs do not affect your income tax liability but the ATO will take them into account when determining certain other obligations and entitlements. For more information in this regard please visit the ATO website.
It is particularly important to note that if you have a HECS/HELP debt it is likely that your repayment schedule will be affected by the RSA arising from salary packaging superannuation. If you do have such a debt please refer to the further information below.
Reportable superannuation amounts and your HECS/HELP Loan
Your HECS/HELP repayments are based upon your ‘HELP Repayment Income’, which includes any Reportable Superannuation Amount (RSA).
Eastern Health Payroll does not take RSAs into account when calculating your periodic HECS/HELP deductions throughout the income tax year. This means that if you lodge an annual tax return containing an RSA you could be faced with an additional lump-sum HECS/HELP payment requirement when you receive your ATO notice of assessment for the relevant year.
To avoid this, you can ask Eastern Health Payroll department to withhold additional HELP contributions.
How to start packaging superannuation
Choose the fund you wish to contribute to or, if you don’t have one, set one up.