Super Saver Scheme and concessional cap?

postform on 21/06/2023 - 11:47
Last edited 21/06/2023 - 11:50

Hi Ozbargain,

I need help.

SSS is very very confusing.

So far here is where I am at.

I'm with AustralianSuper, and so I need to do my after tax contributions by tomorrow if I want it in for this FY. So.. First question: I only have about 13-14k left on my concessional cap. However SSS says you can contribute up to 15k for FY, does this mean I only have 13-14k to contribute to the SSS before it gets taxed at a non concessional rate since 15k I would exceed the cap by 1k?

Second question: To be eligible I need to have the requirements to do a "determination". Prior to the determination all I need to do is contribute extra super amounts into my super fund (Either post tax or salary sac - but for me in this case would be post tax) i.e. up to 15k but for my case it will be only up to the concession cap (13-14k) and thats all I need to do until I get to the determinations step where I either find my self eligible or not. And! if I am not.. then its stuck there forever?

Third question: The only benefit I get from this is the FY23 savings I get for doing the 13-14k contribute to my super. Is that correct?

I'm pretty confused.. I understand the determination part which is just apply for a forum to withdraw and you got like 12 months to buy a house or if you can't then you ask for an extension for another 12 months.. BUT WHAT ABOUT PUTTING IT IN !! :( How does it affect my concessional cap etc etc.. its so confusing. Please if anyone can help me, I'll appreciate it!

Financial

Comments

  • jv on 21/06/2023 - 12:13
    +3

    all I need to do is contribute extra super amounts into my super fund

    Nope.

    After you deposit the funds, you need to tell your super fund that you will be claiming the concession.

    They will then send this info to the ATO.

    • postform on 21/06/2023 - 12:26

      I'm pretty dumb about this.. sorry I'm going to ask you heaps of dump questions so apologies in advance.

      How do I do this? I'm with AustralianSuper. So I do a direct deposit and then call them up? 😅

      • jv on 21/06/2023 - 12:29

        There should be a way to submit it via login into your account on their website.

        I doubt many still do it manually…

      • jv on 21/06/2023 - 12:30

        Also, I wouldn't waste much time following up on this, there are only 7 business days left this tax year…

      • Drakesy on 21/06/2023 - 12:47

        There's an intention to claim a tax deduction pdf on their website that you fill in and email.

      • sumyungguy on 21/06/2023 - 16:42

        This is the form I used, per @Drakesy. You complete and send to your fund: https://www.ato.gov.au/Forms/Notice-of-intent-to-claim-or-va…

  • SharedSugar on 21/06/2023 - 12:15
    +1

    Do you have any extra carry forward cap?

    • postform on 21/06/2023 - 12:25

      I've checked. I have about 60k from last 5 years.

  • soan papdi on 21/06/2023 - 15:40

    I'm not an accountant but here's my understanding. Verify this with someone else qualified. Refer to https://www.ato.gov.au/Individuals/Super/Withdrawing-and-usi…

    • You can contribute up to $27,500/yr as concessional super (pre-tax). This includes what your employer deposits as mandatory plus what you choose to contribute.
    • You have 13-14K left in this. You can contribute this amount and tell your Super that this is concessional (by filling up a form). They will tell the ATO to treat this contribution as pre-tax and it settles in your tax return.
    • FHSS allows up to $15,000 per year to be withdrawn when you decide to, up to $50,000 across all the years you have made extra contributions. This limit is for withdrawing whereas $13-14K you mention is for depositing.
    • You already have $60K pending over the last 5 years, so contributing more than $14K should not cause you problems. However, if you contribute more than $15,000 this FY, you cannot withdraw more than $15,000 (of this FY) when you want to buy your house. This might reduce your final withdrawal amount, depending on how much else you're contributing in other FY.
    • postform on 21/06/2023 - 16:31

      Right… So technically. If I contributed 15k this FY and 15k next FY. And plan to buy early next year, I only have 30k to really play with.

      Which at the end when I pull out would be (30k * 85%) = 25.5k. determination day, say I have a tax bracket 37%

      I'll be withdrawing 25.5k * (25.5k * (37% - 30%)) = 22.95k

      And savings would be the tax savings I get from 15k this FY and next FY

      Which would be around 1.5k per a FY.

      • soan papdi on 21/06/2023 - 17:01

        IIUC you can remove 15K if you deposit 15K. The 15% loss going in is irrelevant.

        • postform on 21/06/2023 - 17:38

          Sorry could you explain in more detail. I'm not understanding you haha sorry .. its really me.. I'm so confused.

          • soan papdi on 21/06/2023 - 18:32
            -1

            @postform: The FHSS scheme says you can remove up to $15,000 of your concessional contributions per FY. So if you put in 15K today (this FY) and 15K (next FY) in July, you will be able to remove 30K early next year. The fact that you pay 15% tax going in doesn't matter.

            • soan papdi on 22/06/2023 - 15:04

              @soan papdi: Not sure who negged me but if I’m wrong, it would be good to find out why

  • postform on 22/06/2023 - 14:12

    So guys please tell me if this course of action is correct to be able to get the FHSS.

    1. After tax contribute to AustralianSuper account 15k
    2. Apply for the notice of intent to convert the 15k after tax contribution to concessional contribution (I have only 14k left however checking that I got forward carry over up to 60k - that should be fine)
    3. After 30th of June - I get my tax return I should be able to be taxed at 15k less.
    4. Next FY after 30th of June - I contribute another 15k repeating steps 1-2.
    5. Buy a house next year January - I request a determination from the ATO and release 30k super amount and release less all the tax at release.
    6. Buy a house.
    7. Tax return next's years 30th of June 2024 - I should be accessed at 15k less due to step 4 concessional amount.

    Is this correct course of action? Please tell me if I am wrong.

    As i just got off the phone with AustralianSuper and said I couldn't use the 15k post tax contribution which converts to concessional amount for the FHSS.. that confused me but reading more docs on this from ATO, it seems the person on the phone was wrong and I am correct as above? Please let me know if there is anything wrong here.

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