Salary sacrificing, by making before-tax superannuation contributions, is a popular strategy for employees on middle-to-high incomes. The deal is that you increase your superannuation balance (and pay 15% contributions tax) while reducing the amount of income tax payable (up to 46.5%) on your salary … [Read more...]
Q: If I make a personal concessional payment of $25,000 (tax-deductible) and a personal $150,000 non-concessional (non-tax deductible) payment into my SMSF and my personal taxable income for 2012/2013 is $20,000, are there possible tax penalties because I’m claiming $5,000 more than my taxable … [Read more...]
Non-concessional contributions are more popularly known as after-tax contributions. You may even hear them called ‘undeducted’ contributions. Such contributions are subject to a contributions cap, which sets a limit on the amount of after-tax contributions that you can make in one year (1 July … [Read more...]
Q: After completing my personal tax return my accountant advised I was up for $45,000 in income tax - (I had ceased work and sold an investment property, then unexpectedly recommenced work). I recently purchased your book “How to make $300,000 without trying” and was interested in the story of … [Read more...]
Q: I am about to make a capital gain of about $200,000. My marginal tax rate is 30% and I am an employee and 43 years old. I want to contribute the equivalent of the capital gain to my super, which is not self managed, so I save some money for the long run? Is this a non-concessional super … [Read more...]
Q: My wife (age 63) and myself (age 65) have a small business. I was told by an organisation that at 65 or over I could put money into super, pay 15% tax on the way in and then draw it out when I wished and pay no tax. In fact I have been told to pay myself $30,000 or less and “launder” the rest … [Read more...]
Q: It has been suggested, that a family self-managed super fund (SMSF) can become a multi-generational tax haven, which can go on into perpetuity, provided that you establish a special corporate trustee, as well as a SMSF Will. The money as I understand cannot remain in the fund indefinitely and the … [Read more...]
Q: Great site! Lots of excellent information. However, I am not sure I agree with your comment "... if you earn less than $37,000 in a year (for the 2010/11 year), you have no real income tax advantages when investing via a superannuation fund." The tax payable on $37,000 (incl Medicare and low … [Read more...]
