A regular PAYG employee earning gross salary 202k; my employer contributions are 9.5%, I salary sacrifice a further 1800 to my super each month.
I've just discovered there is a cap on CCs.
Does the ATO automatically calculate tax liability and will they take into consideration my ability to claim past year CCs having made salary sacrifice?
Or should I be making some declaration in order to claim past year CC entitlement?
Does the ATO automatically calculate tax liability and will they take into consideration my ability to claim past year CCs having made salary sacrifice?
Yes.
Or should I be making some declaration in order to claim past year CC entitlement?
Only for personal CC being claimed as a tax deduction on your own tax return - not for salary sacrifice.
Does the ATO automatically calculate tax liability and will they take into consideration my ability to claim past year CCs having made salary sacrifice?
Yes.
Or should I be making some declaration in order to claim past year CC entitlement?
Only for personal CC being claimed as a tax deduction on your own tax return - not for salary sacrifice.
that's very helpful, thank you.
will it be clear when my past year entitlements have been exhausted?
what happens then? is it still tax effective to make CCs beyond the threshold?
will it be clear when my past year entitlements have been exhausted?
You can look at your super position on mygov, or ask your tax agent to look up your prior year carry forward on online services.
ATO will only have details up to last report by your fund.
https://www.ato.gov.au/individuals/super/growing-your-super/keeping-track-of-your-super/
what happens then? is it still tax effective to make CCs beyond the threshold?
If you exceed your CC cap, then the extra is added to your personal income for that year.
ATO can give you a release so that the tax can be paid from the fund.
https://www.ato.gov.au/Rates/Key-superannuation-rates-and-thresholds/?page=4
Hi ATO Community,
Reading through this chain of comments - I want to clarify that for making the concessional contributions for past year in FY 20-21- does the tax return of old financial years need to be amended by the individual or ATO will automatically do that based on the Notice of Intent claim form.
As the notice of intent claim form would need to be filled in for each financial year for which catch ups are being done.
Please advise.
Thanks
Tax Learning
Reading through this chain of comments - I want to clarify that for making the concessional contributions for past year in FY 20-21- does the tax return of old financial years need to be amended by the individual or ATO will automatically do that based on the Notice of Intent claim form.
As the notice of intent claim form would need to be filled in for each financial year for which catch ups are being done.
No - there is no change to tax returns of prior years.
All that happens is that the current year CC cap is higher because of the unclaimed CC from prior years.
Thanks Bruce.
I have been advised to fill the notice of intent form for each financial year and send it to Super company.
Is super company right in asking for that ?
Shouldn't I be only filling one form for this financial year as I am claiming that entire amount in this year ?
I have been advised to fill the notice of intent form for each financial year and send it to Super company.
Is super company right in asking for that ?
No. There is a limited amount of time that the fund can even accept a notice of intent = earlier of 12 months or date member's ITR lodged.
Shouldn't I be only filling one form for this financial year as I am claiming that entire amount in this year ?
Absolutely correct.
We have a number of SMSFs with members using their unclaimed CC from prior years - SMSF audited, ITRs lodged, no issues.
1,048 views
7 replies