Reportable Employer Super Contributions (RESCs) are super contributions your employer makes on your behalf that are above the minimum Super Guarantee — most commonly arising from a salary sacrifice arrangement. While RESCs don’t go on your tax return as income, they are counted in several government means tests and eligibility calculations that can affect your finances.
What Counts as a RESC?
A RESC arises when an employer contributes more super than the legally required SG amount, and the employee had the ability to influence the amount of the contribution.
Most common RESC scenario: An employee salary sacrifices $15,000 per year into super on top of their employer’s 12% SG contributions. The $15,000 is a RESC — it is reported on the employee’s income statement (previously called a payment summary) under the “Reportable employer super contributions” label.
What is not a RESC:
- Mandatory SG contributions at 12% — this is not a RESC, it is just normal super
- Employer contributions that the employee cannot influence or negotiate (e.g. an employer who voluntarily pays 14% SG for all employees without any individual negotiation)
The “influence” test is the key distinction. If the employee could have taken the extra super as cash instead, and chose super, it is a RESC.
How RESCs Appear on Your Income Statement
Your annual income statement (provided by your employer and accessible via myGov after the end of the financial year) includes a specific field: Reportable employer super contributions. This figure represents the total RESCs your employer has paid on your behalf for the year.
This amount:
- Is not included in your taxable income
- Is not subject to income tax in your hands (it has already been taxed at 15% within your super fund as a concessional contribution)
- Is included in several government means-test calculations (see below)
How RESCs Affect You — The 6 Key Areas
1. HECS-HELP Repayment (Student Loan)
HECS-HELP repayments are calculated on your Repayment Income, which includes RESCs. This means:
Repayment Income = Taxable income + Total net investment losses + RESCs + Reportable fringe benefits
If your taxable income is $50,000 and you salary sacrifice $15,000 into super (RESC), your repayment income is $65,000. Your HECS-HELP repayment is based on $65,000, not $50,000.
The minimum repayment threshold for FY2025–26 is $54,435. At $65,000 repayment income, the HECS rate is 2.0%.
This is a significant consideration for those with HECS debt considering salary sacrifice. The tax saving from salary sacrifice may be partially offset by higher HECS repayments.
2. Child Support Assessment
In family law child support calculations, the Child Support Agency uses adjusted taxable income which includes RESCs. If you salary sacrifice significant amounts into super, your child support assessment income increases — potentially increasing your child support obligation.
3. Super Co-Contribution Eligibility
To qualify for the government’s super co-contribution (up to $500 for low-to-middle income earners who make after-tax contributions):
- Your total income including RESCs must be below the higher income threshold (~$58,445 in FY2025–26)
- At higher income levels, the co-contribution phases out
- If RESCs push your effective income over the threshold, you may lose eligibility for the co-contribution
4. Family Tax Benefit (FTB) and Other Family Payments
Centrelink uses adjusted taxable income for FTB Part A and Part B, and many other family payments. This income measure includes RESCs. High salary sacrifice contributions can inadvertently increase your family payment income test figure, reducing your Centrelink entitlements.
5. Medicare Levy Surcharge and Private Health Insurance Rebate
Income thresholds for the Medicare Levy Surcharge (MLS) and the Private Health Insurance Rebate are assessed on income that includes RESCs. If RESCs push your income over an MLS threshold, you may become liable for the MLS (1.0–1.5% additional levy).
6. Seniority Pay / Government Benefit Means Tests
Various government means tests and benefit calculations incorporate adjusted taxable income that includes RESCs. This can affect eligibility for energy concessions, state-based benefits, and other government programs.
Employer Reporting Obligations
Employers must report RESCs via Single Touch Payroll (STP) — the electronic payroll reporting system. The RESC figure is automatically included in the employee’s income statement at the end of the financial year.
Employers do not need to do anything additional beyond ensuring their payroll system correctly identifies salary sacrifice contributions as RESCs and reports them through STP.
Employee Considerations When Salary Sacrificing
Before setting up a salary sacrifice arrangement, consider whether the RESC impact on the following is material for your situation:
| Check | Question to Ask |
|---|---|
| HECS-HELP debt | Will higher repayment income increase my HECS repayments enough to reduce the net tax saving? |
| Child support | Am I in a child support arrangement where higher adjusted income would increase payments? |
| Centrelink family payments | Do I receive FTB or other family payments with income thresholds close to my income level? |
| Medicare Levy Surcharge | Will the RESC push me over an MLS threshold? |
| Super co-contribution | Am I close to the co-contribution income threshold? |
For most salary sacrifice decisions at middle incomes with no HECS debt and no Centrelink family payments, the tax saving clearly outweighs the RESC flow-on effects. For those with HECS debt or family payments, the calculation is more nuanced.
Frequently Asked Questions
I salary sacrifice $20,000 per year — where does that figure appear in my tax return? The $20,000 appears in the income statement as “Reportable employer super contributions” — but it does not appear in Box 1 (Salary and wages) of your tax return, and you don’t pay income tax on it. However, when you (or your tax agent) complete your return, you enter the RESC in the relevant field, which affects your calculated repayment income and other derived figures.
My employer pays 15% super instead of 12% — is the extra 3% a RESC? Not necessarily. If all employees receive 15% without any individual negotiation or choice, the extra 3% may not be a RESC because the employee did not have the ability to influence the amount. If it is offered as “you can choose extra super or take the equivalent as salary”, then yes, it becomes a RESC.
Can I reduce my salary sacrifice to avoid RESC affecting my HECS repayments? Yes — you can adjust the level of salary sacrifice at any time (subject to your employer’s processes). If the HECS repayment impact partially offsets the tax saving, you might choose a lower salary sacrifice amount that balances the two. Running the numbers with your specific income and HECS balance will show the optimal level.
See also: Employer Super Obligations. For further guidance, see the ATO’s information on reportable employer super contributions or consult a registered tax agent.