Amazon AU up to 10% Cashback to Your Superannuation @ Boost Your Super

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• 

  whitty on 03/07/2020 - 00:12

  +4

  I'd be careful of using this if you have withdrawn super under the covid scheme. If you forget about it and claim a tax deduction for personal contributions in 12 months time the ATO could see it as withdrawing and redepositing super for a tax advantage.

  And any other situation where additional super can cause issues if it's not done the right way.

  Not qualified advice, just something to consider.

  • 

    Yabadabadoo on 03/07/2020 - 09:55

    +3

    According to this from the Government's ABC it legal: https://www.abc.net.au/news/2020-04-02/coronavirus-tax-looph…

    • 

      Tool on 03/07/2020 - 11:18

      Can confirm I did this loophole. I met criteria for the $10k withdrawal which is the only legal question here.
      It could be considered immoral and not in the spirit of the legislation, certainly not illegal.

      • 

        [Deactivated] on 03/07/2020 - 12:59

        Did you contribute back all at once? I'm thinking of doing $1,000/month to spread it out a bit. Thoughts?

        Edit: Also, did you contribute what you withdrew or what you withdrew divided by 0.85 to account for the tax

        • 

          Tool on 03/07/2020 - 15:38

          @[Deactivated]: Yes, all at once. The danger of doing $1,000 a month is you may miss out on market movements over the period (or conversely you may benefit if markets drop). For example, from when my withdrawal was processed to when I contributed the funds back in the market moved up approx 5% - so I need to subtract $500 from the total "gain" of this exercise.

          I should have contributed extra to make up for the 15% tax but I didn't. So really, the exercise cost my fund $2,000 ($1,500 tax + $500 opportunity cost). At a marginal tax rate of 39% I'll personally benefit $3,900 from the exercise when I lodge my return.
          You could argue the compounding effect of -$2,000 in my super fund is greater than a benefit of $3,900 today. I'm hoping my eventual retirement doesn't hinge on the future value of that $2,000!!

          • 

            beebs23327 on 03/07/2020 - 22:58

            @Tool: Are you planning on doing it again this new financial year?

            • 

              Tool on 05/07/2020 - 21:54

              @beebs23327: Unfortunately I don't meet the criteria to withdraw money from super now, so won't be doing it again

      • 

        Anoni Mouse on 04/07/2020 - 21:08

        [@Tool] (https://www.ozbargain.com.au/comment/8951231/redir)

        the only legal question here.

        Wrong!

        in case you haven't heard of part IVA…

        [ATO info] (https://www.ato.gov.au/Individuals/Super/In-detail/Withdrawi…) on integrity measures regarding early release of super.

        Edit: Sorry I can't work out what I'm doing wrong with formatting the links

        • 

          Tool on 05/07/2020 - 22:02

          @Anoni Mouse: There are lots of tax minimisation strategies that get around section 4a.
          What if I legitimately took money out of super thinking I might need it to pay my mortgage due to unlikely impact of covid on my business. Then a month later my circumstances changed because my turnover increased 3 fold, so I decided to contribute my excess cash back to super. This is not a tax minimisation strategy, it's a change in circumstances that happened to have a tax advantage.
          Similar to withdrawal and recontribution super strategy to minimise an estate paying tax on super, also someone "permanently" retiring to meet a condition of release and changing their mind a week later. Circumstances change, sometimes you get a tax break as a result.

          • 

            Anoni Mouse on 06/07/2020 - 23:46

            @Tool: @Tool

            What if I legitimately took money out of super thinking I might need it to pay my mortgage due to unlikely impact of covid on my business. Then a month later my circumstances changed because my turnover increased 3 fold, so I decided to contribute my excess cash back to super.

            Absolutely. I assume there will be evidence of that so no problem.

    • 

      whitty on 06/07/2020 - 10:26

      +1

      Unfortunately the ABC isn't in charge, the ATO is.

      https://www.ato.gov.au/Individuals/Super/In-detail/Withdrawi…

      But it was just a warning for people doing things blindly without understanding potential problems. Obviously if you've got your story straight you could get away with it if questioned.

• 

  soan papdi on 03/07/2020 - 00:45

  Older thread
  https://www.ozbargain.com.au/node/542409

• 

  CereaL on 03/07/2020 - 01:08

  +8

  The dodgy brothers are back!

  Stay clear… Look at the old thread if you want reasons why this is bad!

• 

  Wizard on 03/07/2020 - 04:50

  +2

  Scam!!!

• 

  2pro4sho on 03/07/2020 - 08:17

  +2

  Scam. Don't provide your super details!!!!!

• 

  frkino on 03/07/2020 - 09:52

  What wold be the contribution type going into the account?
  Cashback is not a contribution type

  • 

    AssociatedBoost Your Super @ Boost Your Super on 03/07/2020 - 09:56

    -1

    Cashback is considered a discount by the ATO. Therefore it is an after-tax non-concessional contribution. The ATO website says you cn pay up to $100k non-concessional payments into your super without any tax implications.

  • 

    Shoocat on 03/07/2020 - 09:58

    +1

    From their FAQ:

    Payments made are after tax non-concessional payments. According to the ATO you can pay up to $100,000 non-concessional payments without any tax implications.

    Personally, I'd get advice from someone qualified before doing this. This is after-tax contributions, so if you want to bump your super and aren't already, making pre-tax contributions is a FAR better way to do it in my opinion (not a qualified accountant/financial adviser).

    • 

      AssociatedBoost Your Super @ Boost Your Super on 03/07/2020 - 10:43

      -1

      One thing to consider is according to ATO website when it is time to withdraw your tax after your preservation age, non-concessional contributions are withdrawn tax free. The cashback payments Boost Your Super makes fall under this category. Where as pre-tax contributions are taxable at time of withdrawal. Our view at Boost Your Super is any money that you can find to put in your super (pre-tax or post-tax) can only be a good thing and every dollar counts. And we do encourage you to seek financial advice too. Here is the link to ATO website: https://www.ato.gov.au/individuals/super/in-detail/withdrawi…

  • 

    RMBC on 03/07/2020 - 10:51

    Based on their website and the information above, these will be treated as non-concessional contributions. What this means is that they won't be taxed within your superannuation fund, if no contributions tax paid on them, but will count towards your non-concessional contributions cap.

    This cap is currently $100,000 per year, however you can bring this cap forward and contribute up to $300,000 of non-concessional contributions in one year. This is assuming you haven't triggered the bring forward provisions in the previous two financial years. It also means further non-concessional contributions can't be made in the next two financial years.

    The above scenario is rare as it involves people (generally) putting post-tax money into their superannuation, and the number of people who avail themselves of such options to the extent they hit the caps is few. It's also a massive amount of cash back to reach the caps, so assuming you aren't making other non-concessional contributions there shouldn't be any concerns re hitting them.

    • 

      AssociatedBoost Your Super @ Boost Your Super on 03/07/2020 - 11:01

      Right on the money! Too many people worried about hitting their cap and contributing more than $100k. It is very hard to find an extra $100k to put in your super. And if you can find it (you are rich!) you would more than likely have a financial/tax advisor doing all the work to make sure it is done to your best advantage.

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  HolyCr4p on 03/07/2020 - 11:37

  i will join and use it if you can guarantee my return in 2 weeks not like others like few months

  • 

    AssociatedBoost Your Super @ Boost Your Super on 03/07/2020 - 12:05

    In general the stores will not pay us until they are satisified that the goods/services are not going to be cancelled/returned to store. They normally wait a minimum of 30 days before they approve a transaction. For travel based bookings they will not pay us until the travel is consumed which can be many months away. Once approved then they have to process the payment to us and depending on the store some are quick others are slow. So we are unable to guarantee any payments within 2 weeks. That being said we pay it directly to your super account so you can't get your hands on it straigth away anyway. By the time you do get it when you retire (eg 10,20, or 30 years later) it should have grown with the rest of your super to be worth more than just a couple of dollars. And what is more we do also provide you with EASY SUPER SERIES which are easy super tips on things you can do to grow your super even more. We hope you will join and if you do send an email to [email protected] requesting a double boost - We will give you even better rates until Christmas.