Making a personal deductible contribution to my retail fund

Hi guys,

So I have been calling my retail fund - ANZ Smart Choice Super - regarding how to go about making a concessional contribution in the form of a personal deductible contribution. I am self employed and the idea is to contribute up to the $25K annual cap. The fund are currently sitting in my offset account, but I am keen to add to my super.

Now, after spending quite a bit of time on the phone with a couple of staff members and a superviser, there seems to be no option in terms of biller codes for a personal, pre-tax contribution. They have advised the most suitable option is the biller code that relates to salary sacrifice. According to them it is the only option that covers a personal, pre-tax contribution.

I wanted to ask the community if that sounded about right?
Has anyone been in a similar situation?
I have also asked my accountant and now waiting to hear back.

Thanks guys.

 

I thiugth you just made it post tax and then sent a request to them that you are claiming it; they tax contribs at 15%, you get tax claim for amount deposited. Also, why ANZ....lots of ISF that have lower fees .

 

Generally at year end you must advise the fund you wish to claim a deduction. You complete a form to do that. At that time after processing the paperwork they charge the tax and their letter to confirm processing is the authority to claim a deduction All contributions will be received as non-concessional unless they are employer sourced and thats why employers use clearing houses etc. A self employed person should NOT describe it as sal sac. You cant actually make a concessional contribution since a concessional contribution is one for which a tax deduction will be claimed. You do it after the fund receives the $$$ not at the time.

Things which may affect whether a contribution can be concessional includes:
- Your taxable income before the deduction (super deductions cannot create a tax loss and be aconcessional amount)
- The relevance of your taxable income and marginal tax rate after claiming a deduction eg You dont want a $10K taxable income as you have a higher tax free threshold. You will end up paying 15% on a high contribution which is avoidable.
- Your compliance with the s290-170 notice
- Whether you have breached or over-used caps in the past the tax years (concessional OR non-concessional)
- Whether the super balance has partly or fully been used to fund a pension
- Whether you partly or fully rollover to another fund
- Your age
- Your requirement to meet the work test perhaps

The s290-170 notice can be completed early eg next week. But it can also be varied later if any matter limits your deductible amount. The final date MUST be prior to you lodging your personal 2019 return to meet the notice requirements in that law.

s290-170 of the Income Tax Assessment Act 1997 is the relevant law

 

Hi guys,

Thank you so much for the replies.
It makes sense.
First do the contribution as a member voluntary and then claim the deduction.

Thank you so much, I cannot believe how hard it was to find the answer to this!

Cheers

 

A good question. First I have legacy insurances in there that I am quite happy to keep as is.
In terms of fees, I would have thought it isn't too bad, coming in at 0.57%.
Unless my math is wrong of course.
If it is correct though, for a basket of assets, it is reasonable I would think.

According to superratings.com.au , the ANZ smart choice super is also doing quite well in terms of fees:

SuperRatings Top 10 - SuperRatings



Even on Canstar, they seem rated quite well for fees:

Compare Superannuation Funds using Canstar's Expert Star Ratings

Just had a quick read through selecting super ( SelectingSuper - Tools - Top 10 - Personal - Personal Super Top 10 Fees ) and in terms of fees it is ranked well too.

Now, I don't know much about super, so perhaps this is all using the same data and not very significant.
Interested in any pointers to perhaps a fund with lower fees.

Cheers

 

I cant believe the fund didnt explain it. Its so common

 

That would require licensed financial advice.