Money Magazine Australia - - SUPER -

Domenik is a univer­sity stu­dent and will earn $18,000 as a part-time re­tail shop as­sis­tant in the 2017-18 in­come year. He will get a su­per­an­nu­a­tion guar­an­tee con­tri­bu­tion of $1710 (9.5% X $18,000).

As Domenik will earn be­low the tax-free thresh­old of $18,200 for that in­come year, he may not be re­quired to sub­mit an in­come tax re­turn.

The ATO re­ceives in­for­ma­tion about Domenik’s in­come and his em­ployer’s su­per­an­nu­a­tion con­tri­bu­tions from his mem­ber con­tri­bu­tion state­ment.

It is rea­son­ably sat­is­fied that Domenik is el­i­gi­ble for the low in­come su­per­an­nu­a­tion tax off­set and makes the pay­ment of $256.50 to his su­per fund, in ef­fect re­fund­ing the 15% con­tri­bu­tions tax ($1710 x 0.15).

The off­set will nor­mally go into a su­per ac­count but can be paid in other ways. For ex­am­ple, it can be paid to the in­di­vid­ual if they have re­tired and have no el­i­gi­ble su­per ac­count, or to the es­tate if they have passed away.

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