Soooooo, I guess I didn't read the instructions right when estimating our income. I just saw taxable income.... They added back in my super payments (tax deductions as I'm self employed).
Is that right? Poos.
yeah the estimate has seperate sections
adjusted taxable income is one (is the amount you actually pay tax on)
reportable super contributions (ones you pay yourself) is another
the reason being you already get a tax break for having those super contributions (your taxable income is heaps less) - if it is then left off for FTB purposes, you get a double tax break. so it is added back on. there were a (large) number of people using this as a loophole to be on huge pre-tax incomes but still get FTB so the reportable super contributions was added back in a few years back to stop the rorting
sucks big time for small time people like yourself trying to do the right thing for retirement, but it has to be across the board
Ah, ok, I see the logic of it now. They should only add back the amount beyond a certain % though, because now we get penalised compared to regular employees. Oh well.
i think you'd have to take that up with the ATO hun - i agree, it sucks that you have been deemed to have a higher income than an "employee" on wages. i guess you can appeal it - i don't know what would come of it though.
I know! We're in the same boat. We reported it so no problem there, but it sucks that there is such a big push to contribute into your super above what your employer pays and there are no incentives for doing it now.
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"Adjusted" taxable income
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