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e-Tax and salary sacrifice (super)

Discussion in 'Accounting, Tax & Legal' started by CJ. Wentworth, 16th Jul, 2008.

  1. CJ. Wentworth

    CJ. Wentworth Well-Known Member

    Joined:
    9th Mar, 2008
    Posts:
    92
    Location:
    Cairns, QLD
    Hey guys, just filling in my tax details through e-tax to get an estimate of my return.

    I started working this year in September and elected to Salary Sacrifice 10% of my income to my super. I've come across Item D12 in e-tax (Deductions - Personal Superannuation Contributions), is this something that I have to fill in, or is it generally for the Self Employed?

    From my understanding I was being paid X as a gross amount. X/10 was taken away, and then my PAYG tax was calculated on X - X/10. This was what was being shown in my pay packets anyway.

    Example

    Gross pay: $1,000
    %10 Super contribution: $100
    Taxable income: $900.


    I was trying to lower my taxable income a little to entitle myself to more of the Government Co-Contribution. I know that's changed now, but where (if there is a place) in e-Tax does this get noted?
     
  2. AsxBroker

    AsxBroker Well-Known Member

    Joined:
    8th Sep, 2007
    Posts:
    1,448
    Location:
    Sydney, NSW
    Hi CJ,

    I'm not sure why you would think that your non-concessional contribution would be put in your tax return as these amounts are not deductible (hence the government giving you something back). The government co-contribution depends on two things, first your total income is less than $58,980 (07/08) so this is last year figures and that you make a contribution of after tax dollars into a complying superannuation fund, you can read more about it here http://www.ato.gov.au/content/downloads/spr_89416_nat11589.pdf

    Hope this helps,

    Dan

    PS Before making an investment decision speak to an FPA registered Financial Planner.
     
    Last edited by a moderator: 16th Jul, 2008
  3. Rob G.

    Rob G. Well-Known Member

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    6th Jun, 2007
    Posts:
    717
    Location:
    Melbourne, VIC
    Salary sacrifice is not a personal super contribution.

    You forego salary, but your employer makes the contribution and claims the deduction.

    You benefit since you don't pay tax on the salary you did not receive, but your super balance has increased.

    Cheers,

    Rob
     
  4. CJ. Wentworth

    CJ. Wentworth Well-Known Member

    Joined:
    9th Mar, 2008
    Posts:
    92
    Location:
    Cairns, QLD
    Sorry yeah, I (think) I understood what you guys are getting at. What I thought was that the governement co-contribution of up to $1500 was based on taxable income. If you salary sacrifice into your super, your taxable income comes down by the amount sacrificed (?)
     
  5. AsxBroker

    AsxBroker Well-Known Member

    Joined:
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    Posts:
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    Location:
    Sydney, NSW
    Hi CJ,

    You've hit the nail on the head.

    Cheers,

    Dan
     
  6. CJ. Wentworth

    CJ. Wentworth Well-Known Member

    Joined:
    9th Mar, 2008
    Posts:
    92
    Location:
    Cairns, QLD
    Ahh, so has this lower taxable income been indicated on my Group Certificate?
     
  7. AsxBroker

    AsxBroker Well-Known Member

    Joined:
    8th Sep, 2007
    Posts:
    1,448
    Location:
    Sydney, NSW
    Hi CJ,

    It should have been but that's something your payroll department can confirm for you.

    Cheers,

    Dan