Does Salary Sacrificing into Super Affect CCS?

ccyw88 on 01/04/2024 - 10:18

Hi fellow ozbargainers,

I am planning to max out my Super concessional contribution including any carry forward contributions. However, because I get CCS from Centrelink, I’ve been told that this will affect my CCS percentage as the additional contributions will be included in my adjusted taxable income? Is this true?

I thought by salary sacrificing, I would reduce my taxable income, and ATI will just be taxable income + salary sacrifice amount which would be equivalent to my original taxable income before salary sacrificing? Hence, this shouldn’t reduced my CCS percentage?

Financial Superannuation

Comments

  • Kaz0551 on 01/04/2024 - 10:24
    +8

    Taxable income for tax and taxable income for government payments (adjusted) are not the same.

    You will pay less tax, but you won't get any extra child care subsidy.

    Rereading your post you have the right idea. You won't lose anymore more CCS than pre sacrificing.

  • ccyw88 on 01/04/2024 - 10:30

    Thanks for confirming.

  • larndis on 01/04/2024 - 10:58
    +4

    Yes I think this is correct, the super contributions will still be treated as income for Child Care Subsidy purposes so there should be no impact on your CCS percentage.

    Some people may have an expectation that by salary sacrificing and reducing their taxable income they would increase their CCS entitlement, this is what the policy is designed to prevent.

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