The Superannuation Payable liability recorded on the balance sheet for the previous year (FY 2023) is usually paid in the following year (FY 2024) As a result, it is treated as a 'Deductible Expense' when calculating taxable income for the current year. (For the purposes of this article, it is assumed that the tax form being prepared is for Fiscal Year 2024)
Example financial data for the illustrations below:
Scenario No. 1 - Not Paid 100%: The prior year Superannuation Payable of $5,000 remains unpaid in full until the end of 30 June 2024 (FY 2024):
In this case, since the prior year's Superannuation Payable of $5,000 has not been paid by the end of FY2024, it should be treated a 'non-deductible expense' when calculation the 2024 Taxable Income.
By default, it is included as a deduction in the Reconciliation section. To adjust, a negative amount of -$5,000 should be entered to offset the deduction, effectively neutralizing its impact on the 2024 Taxable Income calculation.
Go to the "Reconciliation" section:
Find the "Other Deductible Expenses" line item and enter the full amount of prior year's 'Superannuation Payable' as a negative value (example below is line item of -5,000).
Scenario No. 2 - Partially Paid: The prior year's Superannuation Payable of $5,000 is actually only partially paid, with 3,000 settled by the end of FY2024. As a result, the deductible expense to be reported on the 2024 Tax Form should reflect the $3,000 paid amount, rather than the full $5,000.
Go to the "Reconciliation" section:
Find the 'Other Deductible expenses' line item and enter the appropriate negative value adjustment to ensure that the deductible expense in the Reconciliation section reflects the actual amount of prior year "2023 Superannuation Payable" that was paid. For this example, a negative adjustment of - $2,000 will correct the deductible amount, resulting in the accurate "Other Deductible Expenses" of $3,000 for the FY2024 Tax Form.
Other Related Guide: