Some employers have been incorrectly including compulsory super amounts as reportable employer super contributions on their employees’ payment summaries for the 2009-10 income year.

The reported amounts incorrectly included are:-

• Super guarantee contributions
• Industrial agreement (award) super contributions

However, reportable employer super contributions should only include additional super contributions made by an employer, for example, super contributions made on behalf of an employee under a salary sacrifice.

These mistakes should be corrected before lodgement and the employer provide an amended payment summary.

If a taxpayer has already lodged their individual tax return using the incorrect information and completed any of the income tested items or have rebates, offsets, obligations or entitlements, which use adjusted taxable income, they will also need to lodge an amendment to that return.

This is relevant for anyone with the need for an adjusted taxable income calculation – an arbitrary amount used for determining eligibility for many tax rebates, offsets and eligibility for Centrelink, child support, HECS, SFSS and super contribution.

If unsure whether adjusted taxable income is relevant, refer to our previous article titled Adjusted Taxable Income, reproduded for your convenience below. 

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Adjusted Taxable Income

A key concept commences 1st July 2009, which affects application of the following measures:-

• Employer share schemes
• Non-Commercial loss rules
• Entrepreneur's Tax Offset

Adjusted taxable income for an income tax year means an individual's:-

• Taxable income
• Adjusted fringe benefits (AFB) total
• Target foreign income
• Net investment losses (NI Losses) (including rental property losses)
• Reportable superannuation contributions, and
• Tax free pension or benefit

Less

• Deductible child maintenance expenditure