Checking Age-Based Limits

These limits apply to employers claiming deductions from company tax liability for contributions made on behalf of their employees. You can have the system validate the total super deductions that an employer has paid for the employee against an age-related limit provided by the Australian Tax Office (ATO). A company might use this validation to restrict an employee's salary sacrifice deductions—because it cannot claim tax deductions for contributions above these limits.

Different age groups have different limits. These limits are indexed every year.

A user-maintained bracket, SUP BR AGEBSD LMT stores this data.

Note:

When you set the variable as a supporting element override to control this check, you must make sure that this deduction adds to the year-to-date (YTD) accumulator that the system uses for the validation. If the YTD accumulator is equal to the limit based on the employee's age, the system does not resolve the super contribution.

The system uses a separate deduction code to resolve the amount necessary to adjust the super contribution.