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Fhsss contribution cap

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Newbie

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If i make contributions via salary sacrifice i will be taxed at 15 per cent before the contributions enter my super account. Is the cap of 15k the sum of contribution value before or after this tax
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ATO Certified

Devotee

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Hi @Bomatt

 

MVF is spot on Man Wink

 

Concessional contributions are made into your fund and included fund's assessable income, taxed at 15%. The most common types of concessional contributions are employer contributions, such as super guarantee and salary sacrifice contributions.

 

Concessional contributions also include personal contributions made by the member for which the member claims an income tax deduction.

 

Concessional contributions are subject to a yearly cap. From 1 July 2017, the general concessional contributions cap is $25,000 for all individuals regardless of age.

 

When it comes time to apply to withdraw under the FHSSS, you can withdraw 85% of eligible concessional contributions PLUS associated earnings calculated on these contributions. 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. This is lifted from here.

 

Hope this helps.

 

 

2 REPLIES 2
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Anonymous

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The contribution cap refers to the total amount of contribution that you make into the fund before tax. 

 

 

 

 

Highlighted

Best answer

ATO Certified

Devotee

Replies 0

Hi @Bomatt

 

MVF is spot on Man Wink

 

Concessional contributions are made into your fund and included fund's assessable income, taxed at 15%. The most common types of concessional contributions are employer contributions, such as super guarantee and salary sacrifice contributions.

 

Concessional contributions also include personal contributions made by the member for which the member claims an income tax deduction.

 

Concessional contributions are subject to a yearly cap. From 1 July 2017, the general concessional contributions cap is $25,000 for all individuals regardless of age.

 

When it comes time to apply to withdraw under the FHSSS, you can withdraw 85% of eligible concessional contributions PLUS associated earnings calculated on these contributions. 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. This is lifted from here.

 

Hope this helps.