Newsletter
August 2010 Newsletter
Reportable Employer Superannuation Contributions Definition: Changes Proposed
The Government has recently proposed that it will amend the law to clarify the scope of the reportable employer superannuation contributions (RESC) definition. RESCs are generally superannuation contributions made under formal salary sacrifice agreements. Amounts reported as RESCs are used in determining eligibility for a range of government financial assistance programs.
The Minister for Superannuation, Chris Bowen, said the Government has become aware that some contributions made on behalf of an individual, which the individual or their employer has no real capacity to influence, are being captured by the RESC definition. The Minister said it wasn’t the Government’s intention for this to occur. The changes are proposed to apply from 1 July 2009 to ensure that the contributions are not captured by the RESC definition.