Author Topic: Who still salary sacrifices?  (Read 279 times)

FFF

  • 5 O'Clock Shadow
  • *
  • Posts: 18
Who still salary sacrifices?
« on: February 10, 2019, 10:58:20 PM »
Given the change in July 2017 to the 10% max earnings rule for concessional contributions to super, I was wondering if anyone still salary sacrifices?

I'm self-employed so have always had to do concessional contributions but as soon as my wife was allowed to we switched. 2 main reasons:

1. Wife's employer was doing all the right things (paying super guarantee on full amount) but they were often pushing the limit on when salary sacrifice payments had to be made, i.e. by the 28th day after the end of the quarter. Up to 3 months is a long time for them to be holding on to her rightfully earned money.

2. Salary sacrifice payments have tax taken out almost straight away (think the end of the month in which they are paid). Concessional contributions only have the tax taken out when the notice of intent to claim form is lodged with the super company. This gives up to a 15 month period that the tax obligation can be working in the market for her rather than the ATO.

Curious to thoughts on whether the change has made much of a difference to how others operate?

marty998

  • Walrus Stache
  • *******
  • Posts: 5988
  • Location: Sydney, Oz
Re: Who still salary sacrifices?
« Reply #1 on: February 10, 2019, 11:53:41 PM »
Yes, I still do - I don't want to go through the hassle of having to notify my fund of an intent to claim a deduction, and then have them and the ATO stuffing it up. Also it's automated through my work payroll and paid every fortnight, so we don't have the delayed problem you are experiencing.


lollylegs

  • 5 O'Clock Shadow
  • *
  • Posts: 13
  • Location: Australia
Re: Who still salary sacrifices?
« Reply #2 on: February 11, 2019, 01:29:49 AM »
we both salary sacrifice the maximum ($25,000 pa including employers contrib).
its a better tax rate so worth it for us.

mjr

  • Bristles
  • ***
  • Posts: 257
  • Age: 53
  • Location: Brisbane, Qld
  • Retired at 52
Re: Who still salary sacrifices?
« Reply #3 on: February 11, 2019, 12:46:00 PM »
If I was still working, I'd still be salary sacrificing.  My taxable income this year will be still put in me in the top marginal, so I'll be lodging a notice of intent to claim this FY.

Next year my taxable income will plummet, we'll see how the numbers look.

Ozlady

  • Pencil Stache
  • ****
  • Posts: 710
Re: Who still salary sacrifices?
« Reply #4 on: February 11, 2019, 05:55:25 PM »
I used to (rather my hubby used to )...but at his tax rate atm...the difference is just not worth the angst of wrestling with the Pain-in-the-bum HR...

However darling daughter has got a casual retail job this year ..may do the non concessional top up super thingy...

happy

  • Magnum Stache
  • ******
  • Posts: 4442
  • Location: NSW Australia
Re: Who still salary sacrifices?
« Reply #5 on: February 11, 2019, 08:57:24 PM »
I still do whilst I 'm still officially employed.  Still the best tax lurk I can get, and I don't have to put that much in to get to 25k