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FHSS, applying for determination and clarification of details

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Hello,

 

I'd like some advice on the FHSS and applying for a determination.

 

1. I've contributed to the FHSS via salary sacrifice only. Do I need to fill in a "Notice of intent to claim or vary a deduction for personal super contributions" form to send to my super fund? I wasn't aware of this form until I read a couple of mentions on this site.

 

My salary sacrifice contributions are as follows:

2017-2018 financial year total: 18,458.49

2018-2019 financial year total: 15,000.00

 

2. I'm unfortunately 3,458.49 over the voluntary cap of the 2017-2018 financial year due to an error. Does this have implications on the FHSS determination amount? (I'm assuming that only the portion that falls within the cap - 15,000 - will be assessed in the determination).

 

When trying to request a determination I'm asked the following. 

 

* Add each of your voluntary super fund(s) contributions from 1 July 2017 onward.

3. Is this a single entry for each salary sacrifice I've made to my super fund?


* Add your super tax deductions from 1 July 2017 onward.

4. Is this a single entry for EVERY super tax deduction from 1 July 2017 onward? Or just the tax deduction portion (15%) that is relevant for each salary sacrifice amount?

 

Many thanks,

 

Alex

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Best answer

Devotee

Replies 0

Hi alix22

 

1 - No, the notice of intent to claim a deduction for personal super contributions form doesn't need to be completed for contributions made under a salary sacrifice arrangement.

 

Salary sacrifice contributions are automatically treated as concessional contributions by a super fund. What the notice of intent form does is to convert personal contributions that would normally be treated as non-concessional contributions into concessional contributions.

 

2 - No, it doesn't matter if you've exceeded the $15,000 limit for the amount of contributions that can count towards the FHSS eligible release amount. $15,000 of the $18,458 will count towards the amount that can be released.

 

3 - For the 2017-18 year, enter a single amount. For the 2018-19 year, either enter each salary sacrifice payment that was made or enter the amount contributed in each calendar month if that saves time.

 

This is because of how the law works in relation to associated earnings. TAA 1953, schedule 1, 138-40(3)(a) and (b). For 2017-18 all contributions are taken to have been allocated to your super account on 1 July 2017, so it doesn't matter when during the year those contributions were made.

 

For 2018-19 contributions are taken to have been allocated to the account on the first day of the month in which they're made. So for example if two salary sacrifice payments of $500 were made, one on 8th March 2018, the other on 22nd March 2018, the full $1,000 will be treated as having been allocated to the account on 1 March 2018 for the purpose of calculating the associated earnings. So you can either enter the two $500 amounts with the separate dates, or enter $1,000 with either of the two dates - it'll be the exact same outcome from an FHSS perspective.

 

4 - the super tax deductions are referring to the notice of intent from question 1, in relation to personal contributions. Salary sacrifice saves tax, but not via a tax deduction, so in your case leave this blank

 

I'm an ATO employee voluntarily providing my time here

1 REPLY 1

Best answer

Devotee

Replies 0

Hi alix22

 

1 - No, the notice of intent to claim a deduction for personal super contributions form doesn't need to be completed for contributions made under a salary sacrifice arrangement.

 

Salary sacrifice contributions are automatically treated as concessional contributions by a super fund. What the notice of intent form does is to convert personal contributions that would normally be treated as non-concessional contributions into concessional contributions.

 

2 - No, it doesn't matter if you've exceeded the $15,000 limit for the amount of contributions that can count towards the FHSS eligible release amount. $15,000 of the $18,458 will count towards the amount that can be released.

 

3 - For the 2017-18 year, enter a single amount. For the 2018-19 year, either enter each salary sacrifice payment that was made or enter the amount contributed in each calendar month if that saves time.

 

This is because of how the law works in relation to associated earnings. TAA 1953, schedule 1, 138-40(3)(a) and (b). For 2017-18 all contributions are taken to have been allocated to your super account on 1 July 2017, so it doesn't matter when during the year those contributions were made.

 

For 2018-19 contributions are taken to have been allocated to the account on the first day of the month in which they're made. So for example if two salary sacrifice payments of $500 were made, one on 8th March 2018, the other on 22nd March 2018, the full $1,000 will be treated as having been allocated to the account on 1 March 2018 for the purpose of calculating the associated earnings. So you can either enter the two $500 amounts with the separate dates, or enter $1,000 with either of the two dates - it'll be the exact same outcome from an FHSS perspective.

 

4 - the super tax deductions are referring to the notice of intent from question 1, in relation to personal contributions. Salary sacrifice saves tax, but not via a tax deduction, so in your case leave this blank

 

I'm an ATO employee voluntarily providing my time here

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