I am a law-abiding sole trader who regularly pays the stipulated child support amount. At the end of last tax year, my taxable income as per the Notice of Assessment was $100000, but according to Child Support, it was $113000. This was because I paid myself $13000 [11.5%] in "voluntary"/not voluntary super.
As far as I am concerned, I have a right and duty to pay myself superannuation and NOT have it deemed taxable income by Child Support.
If I was an employee, my Super would not be calculated in the my taxable income.
So, how is this fair???? It's not!
As a sole trader, of course they are going to appear as Voluntary, but what's the alternative? NOT pay myself Super? How is that fair?
So, either way, I get ripped off. If my accountant does not tick that little box to say "use super to off-set tax", then I pay more tax. However, if he does, I pay more child support.
Damned if I do, damned if I don't.
OR HAVE I MISSED SOMETHING?????
Thanks in advance.
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