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jbone007(Newbie)Newbie
9 Aug 2023

My FY 22/23 income was $364k. My employer continued paying super even after i reached the $27500 contributions cap. They have argued they are required by law to continue paying the super because it's on commissions. I was under the impression they are able to pay me the super portion of my pay as regular PAYG and tax it accordingly once the cap has been reached. That way i dont have to apply to release the excess paid to my super fund every year.


Who is right please?

2,956 views
3 replies
2,956 views
3 replies

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Most helpful reply

WendyATO(Community Support)Community Support
9 Aug 2023

Hi @jbone007,


Your employer is correct by law they do need to continue paying your superannuation. Even after you have exceeded the concessional contribution cap.


Super is paid on ordinary time earnings which includes commissions.


The excess contributions are included as taxable income and taxed at the marginal tax rate.


We have some information about excess concessional contribution release authority and what happens.


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Most helpful reply

WendyATO(Community Support)Community Support
9 Aug 2023

Hi @jbone007,


Your employer is correct by law they do need to continue paying your superannuation. Even after you have exceeded the concessional contribution cap.


Super is paid on ordinary time earnings which includes commissions.


The excess contributions are included as taxable income and taxed at the marginal tax rate.


We have some information about excess concessional contribution release authority and what happens.


jbone007(Newbie)Newbie
15 Aug 2023

Thanks Wendy!

I have since elected to release the excess super from my fund, and the ATO added the excess contributions to my taxable income on my notice of assessment and thus reduced my tax return a little. All good there.


I have since been trawling through my super statements and noticed that there are substantial regular deductions referred to as 'Contribution Tax'. These appear multiple times per year. So, if I'm paying extra tax already, how do I end up in deficit still and get a bill for extra?


Is someone doubling up?

One further query, I can see the election to release has been done at the funds end, how/when does that money get back to me?



Keen to understand! Thanks so much for your help!

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Are employers required to pay super on commissions even over the cap? | ATO Community