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Contribution cap amount

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Newbie

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Hi there, I would appreciate a response for the below.

1. When and how is employer contribution accounted for under the $250000 cap for concessional contribution. E.g. if my employer has not contributed an amount for a financial year, is it counted under the cap for contribution for the same financial year or the year the money goes into my super?

2. Is the above accounting of cap on concessional contribution same under the FHSS?

Kind regards
Piya
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ATO Certified

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Hi @PiyaBhatt

 

Thanks for your questions.

 

@macfanboy is correct. For the purposes of measuring the contribution caps, the contribution made by your employer is considered to be made in the financial year the super fund received it. In turn, if an employer contribution is received in July 2019, it is counted towards your 2019-20 concessional contributions cap.

 

If you refer to the concessional contributions page on our website, you will find the following information:

 

When working out your super contributions for the financial year, remember – contributions don't count when the payment is sent, they only count once the payment is received by your fund.

 

If no super guarantee (SG) contributions were made during the 2018-19 year (even though they should have been) and the employer made up for it during the 2019-20 year, despite the contributions being calculated on 2018-19 income, they would still be counted towards the 2019-20 concessional contributions cap.

 

If that caused someone to exceed the cap, there are provisions in place that allow us to disregard or reallocate contributions to another year due to special circumstances. This provision is specifically for excess contributions.

 

Refer to the disregarding or reallocating your contributions section on our website for more information.

 

With the first home super saver (FHSS) scheme, voluntary contributions (concessional and non-concessional) made for the purposes of the scheme are measured the same way. For example, if you arranged to sacrifice $1000 of your June salary to super and your employer paid it in July, it would be counted as a July contribution.

 

There are no provisions in place to have a voluntary contribution reallocated to another year for FHSS scheme purposes. Regardless of why, if your voluntary contributions were more than $15,000 in a particular year, only $15,000 of those contributions could be included in a FHSS determination and release request.

 

For more information, you can check out the first home super saver scheme page on our website.

 

Hope this helps.

 

Thanks,

 

ChrisR

2 REPLIES 2
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Taxicorn

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1. I assume you meant $25,000 and not $250,000?

 

Contributions are based on financial year paid, so if you earned super in late June and it didn't go into your super until July then it would count towards next financial year.

 

2. I would presume Yes, can't see why it wouldn't be.

 

Highlighted

Best answer

ATO Certified

Community Support

Replies 0

Hi @PiyaBhatt

 

Thanks for your questions.

 

@macfanboy is correct. For the purposes of measuring the contribution caps, the contribution made by your employer is considered to be made in the financial year the super fund received it. In turn, if an employer contribution is received in July 2019, it is counted towards your 2019-20 concessional contributions cap.

 

If you refer to the concessional contributions page on our website, you will find the following information:

 

When working out your super contributions for the financial year, remember – contributions don't count when the payment is sent, they only count once the payment is received by your fund.

 

If no super guarantee (SG) contributions were made during the 2018-19 year (even though they should have been) and the employer made up for it during the 2019-20 year, despite the contributions being calculated on 2018-19 income, they would still be counted towards the 2019-20 concessional contributions cap.

 

If that caused someone to exceed the cap, there are provisions in place that allow us to disregard or reallocate contributions to another year due to special circumstances. This provision is specifically for excess contributions.

 

Refer to the disregarding or reallocating your contributions section on our website for more information.

 

With the first home super saver (FHSS) scheme, voluntary contributions (concessional and non-concessional) made for the purposes of the scheme are measured the same way. For example, if you arranged to sacrifice $1000 of your June salary to super and your employer paid it in July, it would be counted as a July contribution.

 

There are no provisions in place to have a voluntary contribution reallocated to another year for FHSS scheme purposes. Regardless of why, if your voluntary contributions were more than $15,000 in a particular year, only $15,000 of those contributions could be included in a FHSS determination and release request.

 

For more information, you can check out the first home super saver scheme page on our website.

 

Hope this helps.

 

Thanks,

 

ChrisR