How to claim a tax deduction on superannuation

Information in this blog post has been taken from ATO Small Business Newsroom and Super Guide

Do you use the Small Business Superannuation Clearing House (SBSCH)?

You can claim a tax deduction for super payments you make for employees in the 2020-21 income year. Making superannuation payments on behalf of your employees prior to June 30 is an important tax planning strategy. If you intend to do this, these payments must be accepted by the Small Business Superannuation Clearing House on or before 23 June 2021.

This allows processing time for the payments to be received by your employees' super funds before the end of the 2020-21 income year.

Remember to check with your employees if their super fund details need to be updated in your SBSCH account.

Which Super Contributions Can I Claim a Deduction For?

Under the current super legislation, 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 (if paid within 28 days of the end of the month in which your employee turns 75 years old).
• Contributions made under an effective salary sacrifice arrangement
• SG Charge (SGC) pre-payments made for a future super contribution obligation in a later quarter.

Do you have questions?

If you have any questions or would like further clarification in regards to making super payments on behalf of your employees, please feel free to give us a call on (08) 9071 2173, or fill out the form below and we'll be in touch.