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100K Personal super contribution tax reclaim, my income is less than 18k per annum

Newbie

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Replies 3

Could somebody please advice me on how to go about this in laymans terms. I am debt free, over 50 and on no government allowances or other.

 

This financial year I added 100K of my own savings into super. Now from what I understand you can reclaim part of the original tax paid on it by submitting a form to your Super, 'Notice of intent to claim or vary a deduction for personal super contributions' https://www.ato.gov.au/uploadedFiles/Content/SPR/downloads/n71121-11-2014_js33406_w.pdf

My questions:
1 - Submit form get super approval > Then what, how do I claim.
2 - I earn less than 18,000 per annum from my savings so I don't pay tax or very little > Do I get back that part tax from the 100,000 back or because I don't pay any tax I get nothing back for there is nothing to claim back on. What happens.
3 - If I get anything back based on the above how much would I get back.
4 - If I don't get anything from the 100,00 how can I get my tax portion back.
5 - Would all this be automatically calculated by the ATO's 'myTax' when I do it or do I have to pay someone to do it.

6- If I have to pay someone to do it how do I filter out software accountants to someone whom actually knows what they are talking about. It sounds harsh but I have lost thousands to software accountants, one of which I had to report to ASIC for false declarations.

I just want to know how I can get the tax back if at all possible doing it myself.

 
1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Devotee

Replies 0

You do not get 15% back if you complete the form.  Doing so will cost you money as the fund will remove tax of 15% of the nominated amount from your super balance.  

 

For the co-contribution amount, the Government pays this to you super account, this will happen some time after you have lodged your tax return and your super fund has advised the ATO of your contribution.

 

Whilst you shouldn't need to engage an accountant to get the co-contribution, it is worth considering getting tax or investment advice before making any future contributions and/or withdrawing funds from super.

3 REPLIES 3

Devotee

Replies 2

You personal contribution can be treated in two ways.

 

Option one is to just make the contribution and not complete the notice of intent form.  In this case, the contribution is considered to be non-concessional.  No tax is paid on entry to the fund and you are not able to claim a personal tax deduction for any of the contribution.

 

Option two is to complete the intention to claim form for all or part of the contribution, this means that you can claim a tax deduction for the amount specified on the form, with tax calculated at 15% of the nominated amount to be deducted from the contribution.  The amount of contributions nominated on the form are then treated as concessional contributions.

 

As your income is below the tax-free threshold, you should avoid option two.

 

The first $1,000 of your non-concessional contributions might be eligible for a $500 government co-contribution.  Check the information on this page to see if you qualify.

Newbie

Replies 1


Hi Glenn.
@Glenn4802 wrote:

You personal contribution can be treated in two ways.

 

Option one is to just make the contribution and not complete the notice of intent form.  In this case, the contribution is considered to be non-concessional.  No tax is paid on entry to the fund and you are not able to claim a personal tax deduction for any of the contribution.

 

100K has already been contributed and 30 odd percent tax paid on it years ago. So I guess I lose that tax I paid. I thought there would be a benefit to placing into super.

 

Option two is to complete the intention to claim form for all or part of the contribution, this means that you can claim a tax deduction for the amount specified on the form, with tax calculated at 15% of the nominated amount to be deducted from the contribution.  The amount of contributions nominated on the form are then treated as concessional contributions.

 

As your income is below the tax-free threshold, you should avoid option two.

 

So baisically the outcome is the same as the first option I lose the tax paid on it.

 

The first $1,000 of your non-concessional contributions might be eligible for a $500 government co-contribution.  Check the information on this page to see if you qualify.

 

To my knowledge I qualify, so worst case scenario how do I get this slap in the face. Does the ATO's myTax have the ability to do it.

 

Below is how simple my financial status is:

The 100K has already had tax paid on it years ago when I worked. I moved it into super this finanacial year since it was not going to earn any interest in a bank account, and found out I could do it.

My annual income this year will be less than 18K as it was the previous year and will most likely be in the the following years.

I'm over 50 but under 60

I have no debt.

I have nothing to claim.

I consider my self retired.

My total super is less than 500K.

I am on no government benefit.


My financial status could not be any more simple, as above. I paid tax on it, do I get my 15% or so back by submitting the form to super then claiming it on myTax.


Note: I have no problem with paying an accountant, however from past experience, modern tax accountants are just software accountants and have little to no clue nor critical thinking on how to achieve an outcome for the client. It sounds harsh but I have caught them out taking the easy way out which would have cost me thousands, yet alone paying someone to tell me that I'm not going to get anything back.

 

 


 

Most helpful response

Devotee

Replies 0

You do not get 15% back if you complete the form.  Doing so will cost you money as the fund will remove tax of 15% of the nominated amount from your super balance.  

 

For the co-contribution amount, the Government pays this to you super account, this will happen some time after you have lodged your tax return and your super fund has advised the ATO of your contribution.

 

Whilst you shouldn't need to engage an accountant to get the co-contribution, it is worth considering getting tax or investment advice before making any future contributions and/or withdrawing funds from super.