Author Topic: Superannuation thread  (Read 44582 times)

mrmoonymartian

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Re: Superannuation thread
« Reply #250 on: May 16, 2020, 08:06:44 AM »
Anyone know of a calculator that shows you how much super you can salary sacrifice without changing your after tax take home amount? I thought I saw a calculator a while ago but can't seem to find it again.
The answer should always be $0 unless you're getting some kind of special treatment. That's why it's called salary sacrifice and not salary conjuring.

alsoknownasDean

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Re: Superannuation thread
« Reply #251 on: May 18, 2020, 11:32:47 PM »
If you've got a HELP debt I guess it's possible (as the tiers apply to the whole of income). That or if a $2 salary sacrifice causes the tax deducted to drop $2.

middo

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Re: Superannuation thread
« Reply #252 on: May 18, 2020, 11:44:25 PM »
If you've got a HELP debt I guess it's possible (as the tiers apply to the whole of income). That or if a $2 salary sacrifice causes the tax deducted to drop $2.

That would probably work.  I remember years ago getting a $1000 pay rise and receiving less each fortnight in take home thanks to reaching the HECS threshold, as it was called then.

marty998

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Re: Superannuation thread
« Reply #253 on: May 19, 2020, 02:26:35 PM »
If you've got a HELP debt I guess it's possible (as the tiers apply to the whole of income). That or if a $2 salary sacrifice causes the tax deducted to drop $2.

That would probably work.  I remember years ago getting a $1000 pay rise and receiving less each fortnight in take home thanks to reaching the HECS threshold, as it was called then.

Isn't HECS repayments calculated on your adjusted taxable income (so they add back investment losses and reportable super contributions)?

middo

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Re: Superannuation thread
« Reply #254 on: May 19, 2020, 04:41:46 PM »
If you've got a HELP debt I guess it's possible (as the tiers apply to the whole of income). That or if a $2 salary sacrifice causes the tax deducted to drop $2.

That would probably work.  I remember years ago getting a $1000 pay rise and receiving less each fortnight in take home thanks to reaching the HECS threshold, as it was called then.

Isn't HECS repayments calculated on your adjusted taxable income (so they add back investment losses and reportable super contributions)?

It might be, I can't remember now.  That was too long ago when I had that happen to me.  It was a bit of a shock with a mortgage, young kid and bills etc, to receive a welcome pay rise and then get less in pocket.  The joys of a tax system that is not always progressive.

alsoknownasDean

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Re: Superannuation thread
« Reply #255 on: May 19, 2020, 07:47:16 PM »
Yeah the HELP thresholds apply to the whole of the income, rather than progressively.

https://www.ato.gov.au/rates/help,-tsl-and-sfss-repayment-thresholds-and-rates/#HELPandTSLrepaymentthresholdsandrates201

It'd have a fair impact if you were earning just under the $0 repayment rate amount and then go over the lowest threshold, especially prior to 2017-18 when the first step of payment was 4%. In 2017-18 you could go from $55K to $57K and take home less money, because you'd have to pay $2280 HELP in addition to the extra PAYG Withholding.

I do wonder why it's not progressively included with the PAYG thresholds. Not that it bothers me, I paid mine a couple years back.

happy

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Re: Superannuation thread
« Reply #256 on: May 20, 2020, 05:24:41 PM »
It pays to keep an eye out if you are receiving some govt supplement/rebate/benefit and you are near a threshold. Years ago I was close to a threshold for childcare rebate or a family tax benefit, can't remember which. My employer wanted me to increase my hours just a little, by 4 hours.  I did the math, and sure enough went over the threshold and reduced my net income. She looked at me weirdly when I declined, saying I would take home less money.