Employers are required to make superannuation contributions for their employees. This is SG or Superannuation Guarantee. The current SG contribution rate is 10% of your salary. Thus, employer contributions make a large component of superannuation contributions across the nation.
You can have your employer contribution additional amounts to your superannuation on your behalf. Generally you will take a lower salary in return for the extra contributions – this is salary sacrifice – you sacrifice salary whilst your employer contributes additional super equivalent to the reduction in your salary.
There is no limit to how much superannuation that your employer can contribute for you and also no limit on how much they can claim as a deduction.
There are limits for YOU! These are contribution caps which if you exceed mean that you are subject to additional tax (beyond the 15% contributions tax). We cover these caps on other pages on this website.
Employer contributions can go into your SMSF, just like any other superannuation fund.
