Claiming a tax deduction for your employees’ super: What are the rules?

When the annual Superannuation Guarantee (SG) contribution rate increases each year, many employers are less than thrilled at having to pay extra to meet their employee super contribution obligations each quarter.

But there is an often overlooked benefit that comes with increases in the SG rate – a bigger tax deduction your business can claim in its annual tax return.

So, what are the rules when it comes to claiming a tax deduction for super contributions made on behalf of your employees?

Which super contribution payments can I claim a deduction for?

Under current super law, you can claim a tax deduction for the following super contributions you make on behalf of your eligible employees:

• Super Guarantee (SG) contributions paid by the quarterly due date to an employee’s nominated super fund. 
• Mandatory contributions under an industrial award or determination, or a notional agreement preserving a state award.
• Non-mandatory employer contributions and contributions made under an effective salary-sacrifice arrangement. For older employees, these must be paid within 28 days of the end of the month in which your employee turns 75 years old.
• Carry-forward late payments made for a super contribution obligation in a future quarter.