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.

Non-concessional contributions: Re-contribution strategy still applies

Q: My wife turns 60 this financial year and it has always been my intention to cash out her portion of our small self-managed super fund (SMSF) and re-contribute it straight back in, so as to ensure that when she and I pass away, our children are not hit by tax. Is that still a valid strategy and if … [Read more...]

Super contributions: Beef up using a bring forward

Q: Under the 2-year bring-forward of non-concessional contributions, if a person makes an after-tax contribution of $180,001 when age 64 during the 2015/2016 year, can he continue to contribute the balance of the $540,000 anytime during the next 2 years without having to satisfy the work test?A: … [Read more...]

Salary-sacrificed contributions count for Family Tax Benefit

Q: I was wondering what you know about salary sacrifice super being included in Family Tax Benefit family income calculations?A: Since 1 July 2009, salary sacrificed super contributions have been included when assessing income for the Family Tax Benefit (FTB). The income test used for the FTB is … [Read more...]

Super contributions: Turning 65 part-way through the year

Q: I turn 65 in February 2016. So I will be 64 years of age for a large part of the 2015/2016 financial year, but of course I turn 65 during the 2015/2016 financial year, that is, in February 2016. My understanding is that because I will be under 65 for part of the 2015/2016 financial year then I … [Read more...]

Making super contributions: 20 popular Q and As

We receive many interesting questions from readers. We believe this contact with our readers makes our SuperGuide site even more useful for readers because we enhance the SuperGuide website in response to the popularity of certain articles and topics, and in response to the types of questions that … [Read more...]

Concessional contributions: Turning 50 is all about timing

Q: I was born in May 1966 (turning 50 in May 2016). Can you explain which financial year I am considered to be over 50 in relation to the special $35,000 concessional contributions cap?A: For the benefit of other readers, I will first explain the concessional (before-tax) contribution rules for … [Read more...]

Salary sacrificing will not increase co-contribution entitlement

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...]

Turning 65: Maxing out the after-tax contributions cap

Q: If you turn 65 after 1 July 2015, and you retire after 1 July 2015, can you still make the $540,000 bring-forward non-concessional contribution as long as you make the contribution before 30 June 2016? Or do you have to satisfy the work test to do so?Answer: For the benefit of other readers, … [Read more...]

Superannuation contributions: Wearing two caps

Q: Are the caps relating to ‘concessional’ and ‘non-concessional’ contributions regarded as separate? Put simply, can I contribute $30,000 concessional and $540,000 non-concessional sums (a total contribution of $570,000) to my super fund for the 2015/2016 year?A: ‘Yes’ is the answer to the … [Read more...]

Bring-forward rule: 10 super facts you should know

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...]