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Australia: Superannuation contributions cap, directors of multiple boards

Australia: Superannuation contributions cap

Legislation has been enacted to address issues involving superannuation contributions when individuals are directors of the boards of more than one company.


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The legislation received Royal Assent on 2 October 2019, and provides a mechanism to stop multiple employers from having to make superannuation contributions for a director that may sit on multiple boards. The new rules further help prevent individuals with multiple employers from exceeding their concessional superannuation contributions cap (currently $25,000*). Affected individuals will now be able to ask the Australian Taxation Office to exempt their employer from the requirement to pay the superannuation contributions when the individual is likely to exceed the cap.


Company directors who sit on more than one board—or employees who work for more than one employer—may exceed their annual concessional superannuation contributions cap of $25,000 due to the compulsory superannuation contributions that each company or employer must make based on the individual’s earnings from that company or employer. These excess contributions can result in additional administrative burdens as well as tax payments.

Read an October 2019 report prepared by the KPMG member firm in Australia

*$ = Australian dollar

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