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Re: Salry sacrifice to my account

Newbie

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Replies 1

Hi

I am planning to buy a house by December 2021. Is it possible, if I can sacrifice most of my salary in the volunteer super account to reach upto limit of $30,000, and withdraw this amount in 6 months (in December 2021).

Regards,

Ammy

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

ATO Community Support

Replies 0

Hi @Amritjot,

 

If you want to salary sacrifice into super you can, this has to be agreed upon between you and your employer. The amount you contribute will also lower your taxable income. This will be viewed as a concessional contribution and will be subject to 15% contributions tax by your fund.

 

If you want to withdraw this amount to purchase your FIRST home you can do this under the First home super saver scheme (FHSS). However there are strict rules around this, please ensure you read up on these. The FHSS maximum release amount takes into account the $15,000 limit from any one year and $30,000 total limit to the total contributions across all years when calculating the eligible contributions, before adding the associated earnings. 

 

You would only be able to withdraw up to $30000 in Dec 2021 if you have already contributed this amount across 2 financial years. You would need to have contributed $15000 prior to 30 June 2021, this is highly unlikely as a salary sacrifice amount as this is for future earnings.

 

However, you can make a personal (after tax) contribution prior to end of FY. If you want to claim a deduction you would need to lodge a Notice of intent to claim a deduction. A member must give you their notice (or variation) by whichever of the following dates occurs first

  • the day they lodge their income tax return for the income year in which the contribution was made
  • the end of the income year following the income year in which the contribution was made.

  Your fund would send you an acknowledgment of this.

 

Please use the links for further information.

 

All the best.

1 REPLY 1

Most helpful response

ATO Community Support

Replies 0

Hi @Amritjot,

 

If you want to salary sacrifice into super you can, this has to be agreed upon between you and your employer. The amount you contribute will also lower your taxable income. This will be viewed as a concessional contribution and will be subject to 15% contributions tax by your fund.

 

If you want to withdraw this amount to purchase your FIRST home you can do this under the First home super saver scheme (FHSS). However there are strict rules around this, please ensure you read up on these. The FHSS maximum release amount takes into account the $15,000 limit from any one year and $30,000 total limit to the total contributions across all years when calculating the eligible contributions, before adding the associated earnings. 

 

You would only be able to withdraw up to $30000 in Dec 2021 if you have already contributed this amount across 2 financial years. You would need to have contributed $15000 prior to 30 June 2021, this is highly unlikely as a salary sacrifice amount as this is for future earnings.

 

However, you can make a personal (after tax) contribution prior to end of FY. If you want to claim a deduction you would need to lodge a Notice of intent to claim a deduction. A member must give you their notice (or variation) by whichever of the following dates occurs first

  • the day they lodge their income tax return for the income year in which the contribution was made
  • the end of the income year following the income year in which the contribution was made.

  Your fund would send you an acknowledgment of this.

 

Please use the links for further information.

 

All the best.