Nothing
Norm Smith Medallist
- Jul 30, 2009
- 9,136
- 14,475
- AFL Club
- Fremantle
Thanks. I was looking at business property and they're a bit more expensive for that. Still good to have positive feedback. Cheers.
Superannuation/Salary Sacrifice
- Thread starter Angus Young
- Start date
- Tagged users None
Question about pre-tax Super contributions;
I'm well under $250k per year, so i understand those contributions will be taxed at 15%.
My question is; when will that be taxed?
Tax return time? Should I be setting aside 15% to pay tax man?
Or are they taxed on the way in to my Super acc some how?
Or at the fortnightly pay? (I just started a fortnightly pre-tax contribution, and from what I can tell my tax on my payslip is exactly the same)
I'm well under $250k per year, so i understand those contributions will be taxed at 15%.
My question is; when will that be taxed?
Tax return time? Should I be setting aside 15% to pay tax man?
Or are they taxed on the way in to my Super acc some how?
Or at the fortnightly pay? (I just started a fortnightly pre-tax contribution, and from what I can tell my tax on my payslip is exactly the same)
ok thats pretty sweet.
It wouldn't be a huge amount, but I don't really fancy paying $ at tax time.
If Super only takes 85% of my contibutions and gives the rest back to ATO, that's pretty good!
Nothing
Norm Smith Medallist
- Jul 30, 2009
- 9,136
- 14,475
- AFL Club
- Fremantle
If you earn $100k and SS $10k of that you should end up with $8.5k in super (15% tax) and your taxable income will be $90k. Your out of pocket will be $6550 because you would normally pay 34.5% tax.
Most funds deduct on entry to the fund. The rare exception is a fund that deducts at the time they submit their quarterly tax return
But the main point is you have satisfied your tax obligation with declaring a pre tax contribution. And the obligation is on the super fund to pay the tax.
The ONLY time you would be subject to an end of year assessment is if you contribute above the annual maximum (which is the total of all pre tax concessional contributions and not salary or income based). And if you did, you have the option of the super fund making a partial payment for the amount.
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That's awesome! Thank you!
When I chose how much to contribute pre-tax, It was actually based off what I could afford post-tax. I think I'll up it again
I am in no position to offer financial adice. If you think it is appropriate for you; go for it. I will draw your attention this years cap limit is $27,5k (both SG and these voluntary pre tax conts) raising to 30k next year. Any amount above that will attract additional end of year assessments mentioned previously.
And your lack of access to your money until a release condition ie retirement.
Thanks, yeah I won't be anywhere near the limit.
Just one of the ways that i'm re-arranging my savings and investments
Also note, that they adjust and send you a bill for going over the limit several months after you’ve done your tax return so be sure to keep money aside from any return to pay it if you’re at risk. It’s stings otherwise
