Chrisanddeb1 Posted June 20, 2020 Share Posted June 20, 2020 G’day and a happy Saturday all, I moved over here 4 years ago (CPV) and have been working most of the time, on just about minimal wage. I do, however, draw two UK pensions (fully declared) which take me over some tax thresholds, and each year I end up with a lump sum to pay to the ATO. Having no mortgage I don’t use my pension dosh, and most of it sits either in a UK bank or over here in my Oz bank. I have heard recently that if I pay some (or all) of the year’s pension payments into my Super as a concessionary payment then I will not have to pay tax on it thereby reducing my tax debit at EOFY. I did contact the ATO for advice but I think that something got lost in translation as they kept offering me the chance to pay the tax debit with increments! Any advice/clarification on the above will be gratefully received. cheers, Chris Quote Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted June 20, 2020 Share Posted June 20, 2020 Hi there. This should help https://www.ato.gov.au/Individuals/Super/In-detail/Growing-your-super/Super-contributions---too-much-can-mean-extra-tax/?page=2 Quote Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted June 20, 2020 Share Posted June 20, 2020 And this https://www.ato.gov.au/Individuals/Super/Growing-your-super/Adding-to-your-super/Personal-super-contributions/ Quote Link to comment Share on other sites More sharing options...
Marisawright Posted June 20, 2020 Share Posted June 20, 2020 2 hours ago, Chrisanddeb1 said: G’day and a happy Saturday all, I moved over here 4 years ago (CPV) and have been working most of the time, on just about minimal wage. I do, however, draw two UK pensions... I have heard recently that if I pay some (or all) of the year’s pension payments into my Super as a concessionary payment then I will not have to pay tax on it thereby reducing my tax debit at EOFY. Your superannuation fund will have an advice line. Give them a call and they'll explain the whole thing to you. After all, they'll be keen to get your money. I hope you researched your super fund and chose a good one, rather than letting your employer choose. If not, you can still change funds. There are some very poor performers out there and some of the biggest are the worst offenders. Quote Link to comment Share on other sites More sharing options...
Whey aye Posted June 26, 2020 Share Posted June 26, 2020 (edited) You can pay in $25K.This includes your employer contributions.Tax is deducted @15%. So if your employer pays $5K in you can pay in $20K.The $20 K can then be claimed as a tax deduction. Be aware that if your income is low then the $20K may take you below earnings of $37K annually.Then the tax saving is pay 19% tax on earnings between 18200 and 37000,or pay 15% tax on it paying it into super.If your taxable income falls below 18200 pay nothing in. You need all the deductions to be in the 37K and higher earnings. For example if your gross is 60K and you put in the 20K then you pay 15% tax on that,or 32.5% plus Medicare levy by not putting it in . Your taxable income will be $40K Edited June 26, 2020 by Whey aye Quote Link to comment Share on other sites More sharing options...
Whey aye Posted June 26, 2020 Share Posted June 26, 2020 I forgot the important piece of info.You need to download and print off the form from your super fund to say you are claiming the contribution as a deduction.Or ask them to post one out to you. The form is simple,your tax file number,super account number,and Super name and their USI number,and how much you are contributing and claiming as a deduction.Send it back to them and they forward it to the tax office.They will send you a letter ( your super fund) confirming that you have claimed a deduction. If you do not fill the paperwork in then the $20K will be taken as an after tax contribution .15% tax will not be taken out of it and you cannot claim it as a tax deduction. Quote Link to comment Share on other sites More sharing options...
Ken Posted June 27, 2020 Share Posted June 27, 2020 The other important piece of info is that the contribution must be in your Super Fund by 30th June to be used for that tax year. Unless it's already underway I really don't think you have time to get the paperwork sorted for FY2020. Quote Link to comment Share on other sites More sharing options...
Marisawright Posted June 27, 2020 Share Posted June 27, 2020 @Chrisanddeb1, for future years, you could also consider a Transition to Retirement scheme, where by some or all of your Australian salary gets paid straight into super and you live on your UK pensions instead. That may give you a better tax outcome than just paying lump sums every year. It depends on your circumstances so it's impossible to say, but someone like Andrew from Vista, or Ken, could probably run some numbers for you and let you know. Quote Link to comment Share on other sites More sharing options...
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