Can I Claim Superannuation Contributions as a Business Expense in Australia?
Yes, employer Super Guarantee contributions are fully deductible against company income provided they reach the employee's fund on time. Under Payday Super that means within 7 business days of each payday from 1 July 2026. Personal concessional contributions up to the cap (A$30,000 for 2025-26 and A$32,500 for 2026-27) are also deductible.
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What Australian Taxation Office (ATO) says
Super Guarantee paid on time (within 7 business days of payday from 1 July 2026; by the 28th after quarter end before that) is deductible in the year paid. For quarters up to 30 June 2026 the old Super Guarantee Charge was not deductible. Under Payday Super the ATO assesses the charge itself. The charge is calculated on qualifying earnings, interest compounds daily at the general interest charge rate, and penalties of 25 or 50 percent can apply. A deduction is allowed for the charge on qualifying earnings days from 1 July 2026, but not for the interest or the penalties on it. Concessional cap: A$30,000 for 2025-26 and A$32,500 for 2026-27.
When you can claim
- 12% Super Guarantee paid on time (each payday under Payday Super from 1 July 2026)
- Personal concessional contributions (notice of intent to claim required)
- Salary sacrifice super (employer contribution)
- Catch-up concessional contributions (carried-forward unused cap)
- Contributions paid to a fund chosen by the employee, or a stapled fund where the employee made no choice
When you cannot claim
- General interest charge and late payment penalties on a super guarantee charge, which are never deductible
- Personal contributions without 'notice of intent to claim'
- Excess concessional contributions (taxed at marginal rate plus excess charge)
- Contributions to a fund that is not the one the employee chose, which can leave the employer exposed to the charge
Good to know
Pro tip: Pay each payday's SG promptly: clearing house delays can mean 'paid' isn't 'received' in time. Late by even a day = non-deductible SGC.
Important: The maximum contribution base for 2026-27 is A$270,830, and it is now an annual figure. Once qualifying earnings reach it, the employer can stop paying super for that employee for the year. Carry-forward of unused cap is available for five years where the person's total super balance was under A$500,000 at the previous 30 June. A personal contribution counts as concessional only if the fund has acknowledged a valid notice of intent to claim a deduction.
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