Author Topic: Superannuation thread  (Read 10673 times)

mjr

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Re: Superannuation thread
« Reply #100 on: June 15, 2018, 02:23:48 PM »
To claim the tax offset, you need to complete the Superannuation contributions on behalf of your spouse question in the supplementary section of your tax return. You also need to complete Spouse details – married or de facto in your tax return

limeandpepper

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Re: Superannuation thread
« Reply #101 on: June 26, 2018, 03:16:35 AM »
I dropped $1000 into my Super this week to get the $500 match from the government for earning SFA this year.

The cash was in there the next day, just need to wait til I've done my taxes to see the deposit from the government.

Don't expect the government to be super fast, I had to wait till December to get mine last time.

Phryne

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Re: Superannuation thread
« Reply #102 on: June 26, 2018, 03:45:20 AM »
Sent $1000 to my husband’s super account today so he can take advantage of the $500 match.
But I also had to prepay $1500 onto a water bill for an investment property to drop his investment income so his salary was >10% of his total earnings!

deborah

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Re: Superannuation thread
« Reply #103 on: June 26, 2018, 03:59:36 AM »
Sent $1000 to my husband’s super account today so he can take advantage of the $500 match.
But I also had to prepay $1500 onto a water bill for an investment property to drop his investment income so his salary was >10% of his total earnings!
with the budget changes this year, I think that’s been changed for next year.

Phryne

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Re: Superannuation thread
« Reply #104 on: June 26, 2018, 04:13:54 AM »
Sent $1000 to my husband’s super account today so he can take advantage of the $500 match.
But I also had to prepay $1500 onto a water bill for an investment property to drop his investment income so his salary was >10% of his total earnings!
with the budget changes this year, I think that’s been changed for next year.

Hopefully, because it was painful!
Won’t be a problem next year for us though because his salary *should* be more than $247 (not a typo!!)

marty998

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Re: Superannuation thread
« Reply #105 on: June 27, 2018, 06:54:29 AM »
Sent $1000 to my husband’s super account today so he can take advantage of the $500 match.
But I also had to prepay $1500 onto a water bill for an investment property to drop his investment income so his salary was >10% of his total earnings!

Could you have pre-paid interest?

Phryne

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Re: Superannuation thread
« Reply #106 on: June 28, 2018, 03:19:43 AM »
Sent $1000 to my husband’s super account today so he can take advantage of the $500 match.
But I also had to prepay $1500 onto a water bill for an investment property to drop his investment income so his salary was >10% of his total earnings!

Could you have pre-paid interest?

Hmmmm, I don’t think so- We’ve one mortgage which isn’t fixed, but I suspect if I paid extra it would have just been offset against the principle? Maybe this something I need to research further.

I got 1 velocity point per dollar on the only credit card I have that awards points for utilities which I want to churn soon, so there was another silver lining!

Grogounet

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Re: Superannuation thread
« Reply #107 on: June 28, 2018, 07:55:30 PM »
Pre paid is good for your IP not your PPOR

Phryne

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Re: Superannuation thread
« Reply #108 on: June 29, 2018, 02:12:44 AM »
Pre paid is good for your IP not your PPOR

I have one IP loan which is P&I. Checking my internet banking, we’ve paid ~$2k more than the minimum this year. Googling tells me the max I can pay in advance is only the follow year’s interest (~$4k), but all the examples I found are for interest only loans where the interest is more clear cut.

Any advice on this from the brains trust here?

Amusingly, my husband received his share of tips yesterday ($50) which increases his annual salary by 20%. We’re possibly the only people looking forward to declaring tips to the ATO!

marty998

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Re: Superannuation thread
« Reply #109 on: June 29, 2018, 04:30:55 AM »
Pre paid is good for your IP not your PPOR

I have one IP loan which is P&I. Checking my internet banking, we’ve paid ~$2k more than the minimum this year. Googling tells me the max I can pay in advance is only the follow year’s interest (~$4k), but all the examples I found are for interest only loans where the interest is more clear cut.

Any advice on this from the brains trust here?

Amusingly, my husband received his share of tips yesterday ($50) which increases his annual salary by 20%. We’re possibly the only people looking forward to declaring tips to the ATO!

You can only do it on a fixed rate interest only loan, and you need to give the bank enough time to sort the paperwork out. Usually if you haven't talked to the bank by end of April, they won't get it done in time (depending on the incompetantness of your bank).

Phryne

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Re: Superannuation thread
« Reply #110 on: June 30, 2018, 03:55:53 AM »
Pre paid is good for your IP not your PPOR

I have one IP loan which is P&I. Checking my internet banking, we’ve paid ~$2k more than the minimum this year. Googling tells me the max I can pay in advance is only the follow year’s interest (~$4k), but all the examples I found are for interest only loans where the interest is more clear cut.

Any advice on this from the brains trust here?

Amusingly, my husband received his share of tips yesterday ($50) which increases his annual salary by 20%. We’re possibly the only people looking forward to declaring tips to the ATO!

You can only do it on a fixed rate interest only loan, and you need to give the bank enough time to sort the paperwork out. Usually if you haven't talked to the bank by end of April, they won't get it done in time (depending on the incompetantness of your bank).

Thanks marty998. Both our IP loans are P&I so no go there. And, I’m not keen to change the unfixed one, cause it’s little and on a decent rate (driven by a grandfathered discount, not fixed)

lush

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Re: Superannuation thread
« Reply #111 on: June 30, 2018, 04:47:26 AM »
Is anyone here subject to the Div 293 tax (additional 15%).

It probably still makes sense to contribute extra, but it's not as clear cut if you want early access to money and are factoring in some uncertainty in what the government will do to super in future.

Have I got my numbers right here for Div 293:
Example:
Income $230k
Super non-concessional contribution =$20k
Rental Income $10k
Investments $30k
Total $290k
$290k – 250 = $40k
DIV 293 = $40k x 15% =$6k tax payable?

Even though tax would have already been paid on the income and super contributions?
« Last Edit: June 30, 2018, 05:01:03 AM by lush »

missbee

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Re: Superannuation thread
« Reply #112 on: June 30, 2018, 04:41:38 PM »
From the ato https://www.ato.gov.au/individuals/super/in-detail/withdrawing-and-paying-tax/division-293-tax---information-for-individuals/?page=3#How_much_will_your_Division_293_tax_be

If the combined figure is greater than the threshold, you have taxable contributions. Taxable contributions will be the lesser of either
the low-tax contributions
the amount above the threshold
The tax applied will be 15% of the taxable contributions.

I think you're only on the hook for 15% of the 20k concessional contributions.

mspym

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Re: Superannuation thread
« Reply #113 on: June 30, 2018, 04:53:24 PM »
Payroll company managed to squeak some more of my concessional contributions into my super this financial year [yay!] so I'll only be claiming some of the post-tax contributions I put in this year.

Adram

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Re: Superannuation thread
« Reply #114 on: June 30, 2018, 09:40:09 PM »
From the ato https://www.ato.gov.au/individuals/super/in-detail/withdrawing-and-paying-tax/division-293-tax---information-for-individuals/?page=3#How_much_will_your_Division_293_tax_be

If the combined figure is greater than the threshold, you have taxable contributions. Taxable contributions will be the lesser of either
the low-tax contributions
the amount above the threshold
The tax applied will be 15% of the taxable contributions.

I think you're only on the hook for 15% of the 20k concessional contributions.

Correct.

Also, you don't include the concessional contributions in income for surcharge purposes, so your total div 293 income would be $270K. Therefore, if your concessional contributions had been 25K instead of 20K, you would only pay div 293 tax on the 20K excess above the threshold.

lush

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Re: Superannuation thread
« Reply #115 on: July 01, 2018, 05:24:17 PM »
From the ato https://www.ato.gov.au/individuals/super/in-detail/withdrawing-and-paying-tax/division-293-tax---information-for-individuals/?page=3#How_much_will_your_Division_293_tax_be

If the combined figure is greater than the threshold, you have taxable contributions. Taxable contributions will be the lesser of either
the low-tax contributions
the amount above the threshold
The tax applied will be 15% of the taxable contributions.

I think you're only on the hook for 15% of the 20k concessional contributions.

Correct.

Also, you don't include the concessional contributions in income for surcharge purposes, so your total div 293 income would be $270K. Therefore, if your concessional contributions had been 25K instead of 20K, you would only pay div 293 tax on the 20K excess above the threshold.

Thanks - just so I am clear, even if my gross earnings are $350k year, the only part I need to worry about for Div 293 is the amount of super contributions for any FY?

As I don’t intend (while I am still working full time) to put more than the $25k limit,  it sounds like I can do my maths around that as a worst case additional tax scenario – meaning $25k x 15% = $3750.

lush

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Re: Superannuation thread
« Reply #116 on: July 01, 2018, 10:06:32 PM »
I was just thinking about the Div 293 scenario above and thought that if I make spouse super contributions I might be able to receive an offset for this based on this info:

“Spouse Contributions
Under the current 2017/2018 tax rules, you may be able to claim an 18% tax offset on super contributions up to $3,000 that you make on behalf of your non-working or low-income-earning partner. You can contribute more than $3,000, but you won’t receive the spouse contribution tax offset on anything above $3,000.”


The above I think works out to be about $500 tax offset.

GT

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Re: Superannuation thread
« Reply #117 on: July 01, 2018, 11:38:02 PM »
I was just thinking about the Div 293 scenario above and thought that if I make spouse super contributions I might be able to receive an offset for this based on this info:

“Spouse Contributions
Under the current 2017/2018 tax rules, you may be able to claim an 18% tax offset on super contributions up to $3,000 that you make on behalf of your non-working or low-income-earning partner. You can contribute more than $3,000, but you won’t receive the spouse contribution tax offset on anything above $3,000.”


The above I think works out to be about $500 tax offset.

Yeah it's $540.  We contemplated it for adding to my Super, but didn't end up pulling the pin on it.  Probably should have based on the bonus my wife got this year, could have easily afforded it.

marty998

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Re: Superannuation thread
« Reply #118 on: July 02, 2018, 02:33:58 AM »
I was just thinking about the Div 293 scenario above and thought that if I make spouse super contributions I might be able to receive an offset for this based on this info:

“Spouse Contributions
Under the current 2017/2018 tax rules, you may be able to claim an 18% tax offset on super contributions up to $3,000 that you make on behalf of your non-working or low-income-earning partner. You can contribute more than $3,000, but you won’t receive the spouse contribution tax offset on anything above $3,000.”


The above I think works out to be about $500 tax offset.

Lush - you really need to go talk to your accountant!

And you're too late now to do anything about minimising 2017/18 tax via fiddling with superannuation contributions.

So talk to him or her now to map out a strategy for 2018/19 :)


Sorry - Edit to add - I just realised I already told you to go do this last week haha.

I can't recommend you one (an accountant of financial adviser), because as a CA myself I do my own taxes. Unfortunately, I don't have a certificate of public practice, so I'm not allowed to provide tax advice to you (nor charge you for it!)
« Last Edit: July 02, 2018, 02:38:40 AM by marty998 »

lush

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Re: Superannuation thread
« Reply #119 on: July 02, 2018, 06:52:07 PM »
Marty yes I will be discussing this with my accountant -  just throwing some idea's around to get real life feedback.

missbee

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Re: Superannuation thread
« Reply #120 on: July 06, 2018, 12:44:16 AM »
how do you all calculate what your annual % increase is on your super?

GT

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Re: Superannuation thread
« Reply #121 on: July 06, 2018, 01:27:27 AM »
how do you all calculate what your annual % increase is on your super?

Not sure what you mean @missbee

Are you talking about you got a payrise and you want to know how much more will be going into your Super each year?

missbee

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Re: Superannuation thread
« Reply #122 on: July 06, 2018, 01:48:21 AM »
Ah no, what I meant was more along the lines of if my super balance was $XX,xxx as at 30/06/2017 and now it is $ZZ,zzz as at 30/06/2018, if I subtract the known net SG and salary sacrifice contributions for the year from the total amount my balance increased by I got a 7.7% return.
is that how you lot check the overall performance of your super?
If I just look at the total $$ increase it works out to be a rather nice 17.688% but just over half that was technically my own money.

deborah

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Re: Superannuation thread
« Reply #123 on: July 06, 2018, 01:56:40 AM »
It's less than that because your SG and salary sacrifice also earnt interest/dividends.

marty998

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Re: Superannuation thread
« Reply #124 on: July 06, 2018, 02:18:48 AM »
Ah no, what I meant was more along the lines of if my super balance was $XX,xxx as at 30/06/2017 and now it is $ZZ,zzz as at 30/06/2018, if I subtract the known net SG and salary sacrifice contributions for the year from the total amount my balance increased by I got a 7.7% return.
is that how you lot check the overall performance of your super?
If I just look at the total $$ increase it works out to be a rather nice 17.688% but just over half that was technically my own money.

You annual statement will show the investment returns %. Note this might be gross of admin fees and insurance costs so that will also affect the final % return.

It is very complicated, because as deborah said your contributions throughout the year also get invested (at different times, so each earning a different return for the year).

It's a long rabbit hole to come out of if you go want to explore it further.

missbee

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Re: Superannuation thread
« Reply #125 on: July 06, 2018, 02:44:22 AM »
oh, of course I will see what the actual investment returns are on the statement. 
I guess using the word 'return' was unclear, I'm just pondering overall superannuation growth, year on year and a possible cut off point for salary sacrifice contributions (if there's no tax benefit in it for me) and letting compounding do it's thing to get to my desired superannuation balance at preservation age.

deborah

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Re: Superannuation thread
« Reply #126 on: July 06, 2018, 04:45:10 AM »
It really depends on how long you’re retired before you reach your preservation age (the age at which you can access your super), and how much you’re going to end up with in super.

Say your preservation age was 60. If you were to retire at 58, you only need 2 years of expenses available to you, so you could put almost everything into super, so salary sacrifice is reasonable. If you were retiring at 30, you’d really need as much as you can outside super. The 4% rule says you only need 25 times yearly  expenses no matter how many years you plan to retire for, so you would have to have that much available outside super.