Superannuation Q and As

Trish Power (author of Superannuation for Dummies and DIY Super for Dummies) answers readers’ questions on super.

Set out below are all SuperGuide articles explaining Superannuation Q and As.

Concessional contributions caps: 10 facts you should know

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We receive many questions about the concessional  contributions caps. Throughout 2014 and into 2015, SuperGuide, as always, will regularly update readers on any proposed changes to the contributions caps (and other super changes), and the implications of such changes on super strategies. The list … [Read more...]

Bring-forward rule: 10 facts you should know

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I receive a lot of questions from readers seeking information about how the non-concessional (after-tax) rules work; in particular, how the bring-forward rules works. The bring-forward rule works over a 3-year period so it is very important that you keep track of the size and timing of any … [Read more...]

Who can make tax-deductible super contributions?

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Generally speaking, you can make two types of super contributions: non-concessional (after-tax) contributions and concessional (before-tax) contributions. Concessional contributions can also include tax-deductible super contributions, where an individual claims a deduction. For the 2014/2015 … [Read more...]

Concessional contributions: What form do I use to claim a tax deduction?

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Q: I want to make a tax-deductible super contribution to my SMSF. I am trying to find the official form for claiming this type of deduction. Could you lead me to a link where I could find a generic S290-170 notice of intent to deduct? A: You can download the ‘Notice of intent to claim or vary a … [Read more...]

Contributions caps relate to financial years, not calendar years

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Q: I understand the three-year bring-forward rule that allows you to contribute up to $540,000 in after-tax contributions. My question is: What date does the second three-year period start? For example, if I contributed $540,000 on 28 Dec 2014, does that mean I can contribute another $540,000 after … [Read more...]

Super contributions: $1 million opportunity

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Q: I am aged 54. How much can I make in super contributions without attracting penalty tax? Is it $210,000 or $215,000 or some other figure? A: Before I answer your question in detail, for the benefit of other readers I will first explain the figures you quote in your question. The general … [Read more...]

Are you eligible for a Commonwealth Seniors Health Card?

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IMPORTANT: The government has indexed the income test thresholds for the CSHC, effective from September 2014. The income test thresholds will be now indexed annually from September of each year. WARNING: From 1 January 2015, new applicants for CSHC will need to include tax-free superannuation … [Read more...]

Salary sacrificing will not increase co-contribution entitlement

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Q: I understand salary-sacrificed super contributions must be added back in to assessable income for co-contribution purposes. Do you know anything about this? Yes, your understanding is correct. Salary sacrificed contributions count towards the co-contribution income test, and this has been the … [Read more...]

SMSFs: What is the proportioning rule?

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Q: I have come across a statement which refers to a proportioning rule. Could you please explain to me exactly what the proportioning rule is, who it applies to and when it applies, and how you do the calculations for a SMSF? The short answer is: the proportioning rule is a mechanism to calculate … [Read more...]

I’m retired. Can I make super contributions?

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Q: If I have retired from work and later on inherit a reasonable sum of cash, can I make a non-concessional contribution into my superannuation fund? OR is that only permitted while I am working, regardless of my age? A: For the benefit of other readers, I will first explain the meaning of a … [Read more...]