You can generally claim a tax deduction for the salaries and wages you pay to employees and for super contributions you make on time to the right super fund or retirement savings account (RSA) for your employees and for certain contractors.

If you hire workers (employees or contractors), you can only claim deductions for payments you’ve made to your workers if you have met the required pay as you go (PAYG) withholding and reporting obligations for those payments.

The deductions you can claim for paying yourself salary and wages depend on the type of business you operate. There are different rules for sole traders, partnerships, companies and trusts.

You may be able to claim a deduction (in your personal tax return) for your personal super contributions. You may also be eligible for government super contributions such as the super co-contribution or low-income super tax offset.