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Re: Employer's super payment not received by Superfund until 29 July - what can I do?

Newbie

Views 218

Replies 5

Hi,

 

In FY19/20 - I had salary sacrifice arrangements with my employer which I had intended for FHSSS.

 

However, I have recently found out on the ATO Online website that rather than that payment counting towards last year's cap, it is counted toward this year's cap because my employer made the payment on the 28th July but it was received by my super on 29th July and reported as such.


This has negatively impacted me on FHSSS as the contributions I've made this year is now over the $15K cap and not counted towards FHSSS.

 

I've called the ATO Line, my Employer and my Super. All said they could do nothing. 

 

Can anyone else provide suggestion on what I can do to rectify this situation? I'm getting punished for other people's mistakes.

 

Many thanks.

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

ATO Community Support

Replies 4

Hi @Spamal

 

Unfortunately, the information you've been given is correct.

 

It isn't about when you set aside funds to put in your super. It's about when the super fund receives them. This is the same whether the amounts are paid by you directly or through sacrificed contributions through your employer.

 

Your employer has until the 28th day of the month following the end of each quarter to make their contributions for that quarter to the super fund. This means that your employer has done the right thing.

 

While there's no option to amend the contributions made now, you remember that your employer will likely make any super contributions for this current quarter in the first four weeks of July. There's no limit to how long you can save in super for, so you definitely have time to save up more eligible contributions.

 

You can read about super payment due dates and FHSS Scheme on our website.

5 REPLIES 5

Most helpful response

ATO Community Support

Replies 4

Hi @Spamal

 

Unfortunately, the information you've been given is correct.

 

It isn't about when you set aside funds to put in your super. It's about when the super fund receives them. This is the same whether the amounts are paid by you directly or through sacrificed contributions through your employer.

 

Your employer has until the 28th day of the month following the end of each quarter to make their contributions for that quarter to the super fund. This means that your employer has done the right thing.

 

While there's no option to amend the contributions made now, you remember that your employer will likely make any super contributions for this current quarter in the first four weeks of July. There's no limit to how long you can save in super for, so you definitely have time to save up more eligible contributions.

 

You can read about super payment due dates and FHSS Scheme on our website.

Newbie

Replies 3

Hi Blake,

 

Thanks for the confirmation.

 

It still baffles me that options are available to correct this as it has an impact on my personal affairs.

 

The payment was clearly for FY19/20, and if ATO has accepted the employer made the payment for that financial year, then why should it be counted towards a different year for me?

 

Is there an appeal or complaint process on the ATO I can raise this on ?

 

Thanks.

ATO Community Support

Replies 0

Hi @Spamal

 

Sorry about your situation.

 

You can find information on our website about our complaints process.

 

Ari

 

Newbie

Replies 1

Hi Spamal,

 

I'm in a similar situation to you it seems. I've made salary sacrificed contributions through my employer that were not attributed to the year in which they were earned because the date my super fund recorded receiving one of the payments was 2 days into the following financial year.

 

Subsequently my personal post-tax (non-concessional) contributions for this financial year, which should be able to be withdrawn in full, have been reduced by the amount received in the incorrect financial year.

I believe the way that salary sacrificed contributions from employers are treated for the purposes of the FHSSS has been overlooked by the ATO as employers are within their rights to pay salary sacrifice contributions up to the 29th of July, and if they do the payments are taken to have been made in a different financial year.

The lack of communication around this definition of which financial year a contribution is considered to have been made has a real, and in some cases, devasting impact on the very people who the scheme is designed to help.

At the very least the First Home Super Saver Scheme page on the ATO website should identify this is a risk that people intending to use the scheme should be aware of.

 

Have you had any luck with the appeal process yet? I intend to lodge a complaint about the issue as well, perhaps we can bring some attention to this issue and the negative impact it has on first home buyers.

Newbie

Replies 0

Unfortunately, I didn't have the time to lodge a complaint as I had to settle and get my funds released asap.

 

Even the release was a nightmare. It was supposed to take 5 weeks but mine took closer to 7 as the "system broke down" and the release request didn't get triggered to my super. Nobody knew until I called.

 

Call as soon as you have requested the release to confirm they submitted their request. Don't listen to them and wait 5 weeks like I did.

 

Good luck.