Is it possible to claim 'Salary Sacrifice', as a deduction, I read somewhere that you send a form to the Super fund, then somehow add it in the deductions, which I can't find when doing the 'Tax', online through the 'ATO' portal.
Any advice would be appreciated.
Thanks
You only need to lodge the NOI and get the acknowledgement before you submit your tax return. I submit my return in March of the following year so lodge the NOI in Feb - because as soon as you lodge the NOI the fund will deduct the 15% tax (or 30% if you are Div 293)
the fund will deduct the 15% tax
Mine deducts the tax upon deposit.
The Fact is YOU CANT !!!!
Seems some people here have got this ALL WRONG!
(the ones talking about NOI- Notice of Intent to claim a tax deduction)
Its your employer contributing to your super fund BEFORE TAX……Not you!
So the money goes into straight your super without you paying any income tax on it….get it??????
So you already have the tax advantage. No tax paid in this case.
Because your employer makes the contribution and not you, they get the tax decution…just like any other company or payroll expense.
A tax deduction cannot be claimed TWICE on the same expense..right????
Whoever makes the contribution to the super fund gets the tax deduction…right???
However because a tax deduction has been claimed on the contribution (by your employer), the 15% contribution tax is deducted.
PS: "Notice of Intent to Claim a Tax Deduction" applies mainly to self-employed people who make/pay their own superannuation contributions and so can claim the tax deduction.
This is NOT "salary sacrifice" to which OP refers,
Now we can close this post.
Some advise advice. Get some grammar lessons so your posts are easier to read.
Savage.
priceless … (i mean cashless)
What's my grammar got to do with it? Leave the poor old lady alone, she's a saint.
hmm new to me i have been making salary sacrifices but dont know if they are also a deduction? how that even possible? its already reducing our income from the beginning (As we didnt get it) so the tax we pay will be less. and now we can use it again as deduction? of what?
Correct!
A tax deduction can only be claimed once - by the person or entity paying for that expense.
And yes about salary sacrifice
Any salary sacrifice payments to whatever made on your behalf are made BEFORE TAX is DEDUCTED from your income.
Salary Sacrifice is the sacrificing of salary in lieu of something else. In this instance - telling your employer to put it into super thus reducing your taxable income
Voluntary personal contribution is putting money into super and then filling out a Notice of Intent to claim form tells your super fund how much you wish to claim as a deduction.
The net effect of both is the same - the manner in which you do it is not. Based on your question you a muddying the two things above together…
ah yes thats why i was super confused… already getting tax benefit and still want to double dip ? no way
thats why i was super confused
I see what you did there…
Actually salary sacrifice contributions to superannuation are much better financially.
How do my friend
Just do the maths
I used to sell superannuation products so I well know
@bemybubble: Bang!
You got that one wrong.
Not a very good accountant.
I did make a generalisation that is a little incorrect and you should have picked this up my friend…
If your total assessable income is lower than the relevant income threshold, making after-tax contributions may qualify you for a co-contribution from the government of up to $500.
No contributions tax is deducted from your after-tax contributions (provided you do not
exceed the contribution limits). If you have a very low income, your income tax rate
may be lower than the 15% contributions tax deducted for salary sacrifice, so you
could pay less tax by making after-tax contributions rather than salary sacrifice.
This is particularly true for people who have low income and receive franked dividends from any share investments.
See here for full explanation:
https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&c…
@HeWhoKnows: Your explanation has elements I do agree with.
However:
Actually salary sacrifice contributions to superannuation are much better financially.
Your points above totally speak the opposite :)
Not a very good accountant.
Gonna retire and be a full time Ozbargainer I reckon
@bemybubble: As I did admit.. "I made a generalisation that is a little incorrect"
Certainly everyone's tax situation and priorities is different
Hence what is best depends on ones individual circumstances
Certainly everyone's tax situation and priorities is different
Hence what is best depends on ones individual circumstances
Now that we can agree on
Its it possible to claim 'Salary Scarfice', as a deduction
Salary Sacrifice is an arrangement with your employer. You don't need to claim a 'deduction' as such. Your employer will exclude the amounts from your 'taxable income' on your PAYG figures to the ATO (so you're not paying tax on it).
Further to the accurate post by @bobbified, you only have to send a form to your super fund if you're intending to claim a tax deduction for personal (post-tax) contributions exceeding the $27,500 annual concessional contributions cap by using unused concessional cap amounts from the previous 5 years.
ah make sense. if you do post tax and you have cap unused then you claim that ato shouldnt tax that much
so long as you told super fund so they tax the 15%. The tax return question clearly checks that you told super fund on the required form and received the official acknowledgement.
Hold on. If you make post-tax deductions to super, you can tell the super fund that you are going to claim a tax deduction on some or all of it (up to the concessional contributions cap) and they will deduct 15% tax.
Then there is a deduction on tax return "Did you make a contribution to super that you notified fund you were going to claim and got confirmation".
If op is going to exceed the cap, they just need to claim less. The same form for the super company has an amendment section for this.
There's no form to say "exceeding annual cap to use previous year's cap". The ATO knows all - they don't need us telling them anything.
@sumyungguy: It tells the super fund that you intend claiming a deduction, so the super fund takes 15% tax from your contribution.
It's the only way to make a deduction for super contribution (as opposed to salary sacrificing pre-tax, which has the same effect).
Depends if you've salary sacrificed pre or post tax
If you've asked your employer to put additional money into your super or your employer is taking money out of your pay for credit cards/items then you can't claim it (pre-tax).
If you've personally put money into your super that your employer has already paid you (post tax) then yes you can claim and need to fill out a salary sacrifice form that your super fund will provide and claim it on your tax.
There's a check box in one of the early pages that you have to tick that turns on the salary sacrifice claim page (it doesn't appear unless you do this), kinda stupid but hey.
No, because you are confused about what you ‘read’
if you make after tax contribution to super last FY, you can claim that on tax after you submit the ‘ato’ form to your super. I could put a link here but you better off asking your super for free advice.
Salary sacrifice happens throughout your pay period. You already receive tax benefits. Claiming this again as tax deduction will be double dipping. ‘Ato’ will call you to repay that in ‘itunes’ gift card
Can't claim deduction when slave sacrifice
slave doesnt have right to anything, let alone claiming $
If your employer makes the contri, no need to lodge a NOI.
If YOU make a voluntary contri, do need to lodge a NOI.
Careful of your contri cap(s).
It's not the pre tax salary sacrifice that u can get a deduction for ..it is the payment u mske to the fund from savings..as long as total contributions are under the cap (27k? )
27,500 to be exact. And can change in the future.
Related topic..
So it is really worthed to salary sacrifice to the max?
It has good tax advantages, of you don't have other areas you could put the money to better use, eg to reduce a mortgage on your PPOR.
Yes, pre-tax up to the concessional cap if your wage is high enough to make that work - the end result I think is the same whether you do pre-tax or post-tax. Here's an example of a good time to make a significant post-tax contribution: if your super balance will reach $500K in FY24/25, consider contributing your unused concessional cap for the last five years as a post-tax contribution in FY23/24 using home loan redraw. I did this myself in FY21/22 and earned 11% back in tax when my mortgage rate was under 4%.
will reach $500K
Till i die i wont be able
yep, contact them. Superfund will have the form on their website.
pretty sure you needed to have their acknowledgment by 30-Jun though to claim for the last FY…