Super/Tax question...

[trading_rookie]

Can someone who owns a company and pays themselves a salary claim super
contributions? For example if I as the 'employer' pay myself the 'employee'
9% super contributions can I claim all these contributions back at the end
of the financial year as the 'employer'?

 

[mazzatelli1000]

Can someone who owns a company and pays themselves a salary claim super
contributions? For example if I as the 'employer' pay myself the 'employee'
9% super contributions can I claim all these contributions back at the end
of the financial year as the 'employer'?

There is an upper limit on the amount you can claim - $50,000

Also if the tax office deems that if you are simply running a company with yourself as the employee they will treat this set up as if you were an employee and only allow deductions that an individual would.

If that is the case you won't be able to claim deductions

This is my understanding --- do extra research

 

[Big_Daz]

Your company, as the employer can claim an unlimited deduction for superannuation it pays to employees. Eg: regardless of what the employer pays (eg: $200,000) it is 100% tax deductible.

Where the tax is imposed on excessive contributions is in the superfund. If ou contribute say the $200k above, $50k will be taxed in the superannuation @ 15% and the $150k @ 31.5% at the excessive contirbution rate.

In answering your question, yes superannuation is 100% deductible from an employer to employee.

 

[GreatPig]

$50k will be taxed in the superannuation @ 15% and the $150k @ 31.5% at the excessive contirbution rate

I think that's at an extra 31.5%, so a total of 46.5% (ie. the top marginal rate).

And the threshold is $100K if you're aged 50 or over, at least for the next few years (provided they don't change it in the meantime).

GP

 

[Tysonboss1]

Can someone who owns a company and pays themselves a salary claim super
contributions? For example if I as the 'employer' pay myself the 'employee'
9% super contributions can I claim all these contributions back at the end
of the financial year as the 'employer'?

Yes, If you are running a company and paying yourself a wage then you will have to by law pay yourself 9% super.

 

[trading_rookie]

Thanks guys for your input.

As far as super contributions go, I'm only talking the minimum 9% no more
so this will be taxed 15% by the government. And as far as ATO laws go I can
wear two hats - employer/employee and claim what I contributed to my super
100% as per Super laws amended July 2007. This seems to easy, surely the
ATO is trying to plug this up like it's trying to with -ve gearing?

Also, what would happen if I don't pay myself 9% super? Does the ATO do
auditing on SME's?