Tax Strategy for 10k Early Access to Super

Could someone please inform me of the legitimacy of this strategy for someone with a taxable income of 130k (made up of income, dividends and rent)?:
Wife is unemployed and draws out 10k from super as is currently allowed by govt.
I do not contribute any extra payments to super other than the SG put in to my account by my employer therefore I have extra room in my concessional contribution cap for this financial year so the 10k will be placed into my super as a personal concessional contribution. This can then be a tax deduction, but understanding that there will be a 15% tax on this.
Is this strategy feasible or have I missed something?
Sincerely look forward to your comments.

 

If your wife is unemployed at the date she makes the declaration to the ATO she is permitted to access the second $10K witrhdrawal of super. If she was to recontribute to her super and claima deduction it could be construed as a scheme. And the deduction caneclled. It also seems high risk for detection. But wait several months and hey maybe she had no need for the $$$. No better place to put it is back to the fund and then claim a deduction under s290-170. Just dont be "obvious" and make it look "schemey"

What you choose to do with it is your concern. You can throw it all on black if you want. Gifting to you is also allowed. What you do is your affair.

Tax is at least 15%. If Div 293 applies to the contributor then the rate could be 30%. At $130K doesnt sound like this impacts you BUT... If you were to lose job and be paid out could this imapct you ? Test is $250K. The $250K includes the $10K and all employer contributions too.

Division 293 income
The income component of the Division 293 tax calculation is based on the same income calculation used to determine if an individual needs to pay the Medicare levy surcharge (MLS), adjusted for concessional contributions received.

The components of this income calculation are:

• taxable income (assessable income minus allowable deductions)
• total reportable fringe benefits amounts
• net financial investment loss
• net rental property loss
• net amount on which family trust distribution tax has been paid
• super lump sum taxed elements with a zero tax rate
• assessable first home super saver released amount.

Have you considered the carry forward cap which means many taxpayers have a concessional cap of more than $25K ? It can be checked in MyGov / ATO under super or by your tax agent.

 

Thanks Paul. Can’t bring forward as balance is over 500k. Appreciate the response. All systems are now go!

 

COVID-19 early release of super - integrity and compliance
It would be worth reading this before doing anything.

 

Mmmm ........ very interesting. “Ignorance is no excuse”!

 

That said I have represented a small number of taxpayers who incorrectly claimed and the decisions were quite favourable. There seems no issue with the OPs wife's release if she is unemployed. But if she accepts a job tomorrow then the declaration may have some issues. Another reason why the time between access and recontribution should have some timing delay