Apologies - just realised this is on the wrong board - should be in 'Ask a Mustachian'. Sorry.
Hi all,
Question for the Aussies out there. I salary sacrifice my super and I am now in a position to maximise my concessional super contributions to the cap ($30,000 for me) as I can live with the reduction in take home and still invest outside of super.
I have done some research and know that the cap includes;
1. My employers contributions
2. My contributions (compulsory and extra)
3. Other amounts paid by your employer from your pre-tax income to your super fund, such as administration fees and insurance premiums
My questions are around the 'insurance premium' bit above. I have income protection insurance and Death & TPD insurance as part of my Super (which totalled ~$1800 last year)
Q. If I set up my super payments to be $30k/26 fortnightly payments (including Employer Contribution and Salary Sacrifice Fee) and the insurance cover payments are deducted from this I will only contribute $28,200 into my Super. Am I calculating this correctly or have I misinterpreted the ATO page? Can I contribute more than $30K but account for the 'loss' of $1800 to insurance payments?
Basically, I'd prefer to not go over the cap and have a tax debt at this point but wish to fully maximise my Super contributions (pre-tax) to the last cent.
Any help would be appreciated so I can call my fund this week and get the appropriate figure for the remaining weeks of this financial year.
Thanks.