Employer superannuation contributions

​​​​​​​​​​​​​​​​​Payroll tax is payable on employer superannuation contributions referred to as a ‘superannuation benefit’ in the Payroll Tax Act 2008​. 

Payments classed as taxable superannuation contributions include: 

  • ​employer contributions made to superannuation funds within the meaning of the Commonwealth Superannuation Industry (Supervision) Act 1993; 
  • employer contributions which are a superannuation guarantee charge within the meaning of the Commonwealth Superannuation Guarantee (Administration) Act 1992; 
  • employer contributions to the Superannuation Holding Accounts Special Account within the meaning of the Small Superannuation Accounts Act 1995 of the Commonwealth; 
  • employer contributions to a retirement savings account within the meaning of the Commonwealth Retirement Savings Accounts Act 1997; and employer contributions (including top-up contributions) to any other form of superannuation fund or scheme including contributions to, or in relation to, unfunded or partly funded superannuation schemes where the contributions are in respect of employees' service. 

Taxable superannuation contributions will also include:
  • superannuation contributions made on behalf of Directors or Board Members.  Refer to Remuneration​​; 
  • contributions made on behalf of both employees and deemed employees (for example, certain contractors​).  
  • Super Guarantee Contributions (SGC) (+ amounts > 12 per cent); ​​
  • Salary sacrifice​ contributions; and
  • non-monetary superannuation contributions eg works of art, property.

SGC penalties are not taxable. Refer to the payroll tax Penalty Changes under Superannuation Guarantee Charge ruling.
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The value of non-monetary contributions to a superannuation fund is to be included as taxable wages if made on behalf of:
  • an employee;
  • a contractor deemed to be an employer; or
  • a director.​​​
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Employers may either pay payroll tax on superannuation contributions when:
  • the liability arises (i.e. remitted on monthly returns regardless of when the actual contribution is paid to the fund); or 
  • the superannuation contribution is made to the fund. 
​The Commissioner of State Revenue requires that whichever method is chosen, it must be consistently used from one year to another as the basis for the inclusion of superannuation contributions in returns.

For employer contributions to the Retirement Benefits Fund, a superannuation benefit must be included in monthly returns based on the following calculations:
  • In the case of an employee to whom Part 4 of the Public Sector Superannuation Reform Regulations 2017 applies and who is employed by:

a) a prescribed authority that is not specified in column 1 of Schedule 1 to the State Service Act 2000; or

b) a controlling authority of any industry or undertaking, carried on by or on behalf of the State; or 

​c) the person, organisation or authority responsible for payment of contributions to the Fund, in respect of a contributor where the services of a prescribed authority are transferred to another person, organisation or another prescribed authority, by multiplying the wages of the employee by the average new entrant contribution rate; 

In the case of any other employee to whom Part 4 of the Public Sector Superannuation Reform Regulations applies and who is employed by a government department, statutory authority or other organisation specified in Column 1 of Schedule 1 to the State Service Act 2000, by multiplying the wages of the employee by 11 per cent or such other rate that may be determined by the Treasurer from time to time. 

Where a fund is on a ‘contribution holiday’ (ie. the fund’s investments have performed well and the employer is not required to contribute funds for a period of time) and no employer contributions are being made to the fund, no payroll tax is payable.​​​

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