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Income Tax Act 2007

General collection rules - Employment-related taxes - Calculating amounts of tax

RD 67: Calculating amounts of tax for employer’s superannuation cash contributions

You could also call this:

“How to work out tax on employer superannuation payments”

When you make a superannuation cash contribution for your employees, you need to calculate how much tax to pay on it. Here’s how you do it:

You usually use the rate found in schedule 1, part D, clause 1 of the Income Tax Act. This is the standard way to figure out the tax.

If you’re making a contribution for people who used to work for you, you pay 33% of the contribution as tax.

If you’re putting money into a defined benefit fund, you can choose to pay 39% of the contribution as tax.

Remember, these rules are set by the government to make sure the right amount of tax is paid on superannuation contributions.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1520168.

Topics:
Money and consumer rights > Taxes
Money and consumer rights > Savings and retirement
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“Rules for complying funds no longer apply”

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RD 67B: Calculating amounts of tax following changes to rates or thresholds, or

“How to calculate tax on super contributions when rates or thresholds change”

Part R General collection rules
Employment-related taxes: Calculating amounts of tax

RD 67Calculating amounts of tax for employer’s superannuation cash contributions

  1. The amount of tax for an employer’s superannuation cash contribution is—

  2. the amount determined under schedule 1, part D, clause 1 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits), unless paragraph (b) or (c) applies; or
    1. 33% of the employer’s superannuation cash contribution, if the contribution is made by a person for the benefit of 1 or more of their past employees and paragraph (c) does not apply; or
      1. 39% of the employer’s superannuation cash contribution, if an employer chooses 39% and the contribution is to a defined benefit fund.

        Notes
        • Section RD 67: replaced (with effect on 1 April 2021), on , by section 159 of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).