Example: No reportable employer super contributions or reportable super contributions
Julie (aged 49) works two jobs and has a total income for the 2012-13 financial year of $300,000. Julie's total super guarantee contributions from both jobs is $27,000 (9% of $300,000).
Julie did not make any additional salary sacrificed contributions (or reportable super contributions). Julie's concessional (before-tax) contributions cap is $25,000. Julie's excess concessional (before-tax) contributions amount is $2,000 ($27,000 - $25,000). Julie's total income for income test purposes is $300,000.
Julie chooses to accept her once-only refund offer of $2,000 instead of paying excess contributions tax.
The amount of Julie's refund offer
|
$2,000
|
minus either her reportable:
The figure she uses depends on which income test she wants to check.
|
- $0
|
equals the amount of increase to income used by the test
(This figure cannot be less than zero)
|
=$2,000
|
To calculate the effects, Julie does the following calculation:
- Step 1: add the amount of the refund offer ($2,000) to her taxable income from prior to the refund offer ($300,000) for a taxable income total of $302,000.
- Step 2: minus the amount of her refund offer ($2,000) from her reportable employer super contributions or reportable super contributions ($0) with a result of -$2,000. As the amount cannot be less than zero she will put $0 into the calculators as her reportable employer super contributions or reportable super contributions
Julie uses these new figures in the calculators allowing her to understand the true impact of accepting the refund offer on her circumstances.
Example: Reportable employer super contributions and reportable super contributions
Bob is aged 35 and in 2012-13 has a total salary of $165,000. Bob's super guarantee contributions are $14,850 (9% of $165,000). Bob made additional super salary sacrificed contributions, which are classed as both reportable employer super contributions and reportable super contributions, of $15,000. Bob's current concessional (before-tax) contributions cap is $25,000. Bob's excess concessional (before-tax) contributions amount is $4,850 ($14,850 + $15,000 -$25,000).
Bob's total income for income test purposes is $180,000 ($165,000 + $15,000).
Bob chooses to accept his once-only refund offer of $4,850 instead of paying excess contributions tax
The amount of Bob's refund offer
|
$4,850
|
minus either his reportable:
The figure he uses depends on which income test he wants to check.
|
- $15,000
|
equals the amount of increase to income used by the test
(This figure cannot be less than zero)
|
=-$10,150 but it cannot be less than zero, therefore
=$0
|
As the amount is $0 there is no flow-on impact for Bob on his offsets, surcharges, benefits and payments as a result of accepting the offer.
Sections within How accepting the refund offer may affect ATO and other government income tests
Last Modified: Tuesday, 3 July 2012