Tax-free super

Tax-free means no tax is payable. In terms of superannuation, anyone aged 60 or over can expect tax-free super benefits (unless you’re a public servant). Even when you’re under the age of 60, you may be able to access tax-free benefits.

Set out below are all SuperGuide articles explaining Tax-free super.

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...]

SMSF trustees unfairly targeted by super tax illiterates

Some leaders in the superannuation sector and in some economic think tanks are ignorant about SMSFs, including how the super tax rules work generally. Yet we have numerous pronouncements by various individuals and organisations about SMSFs not paying tax, or SMSF trustees not having the skills to … [Read more...]

SMSF basics: Updating SMSF trust deeds

Q: I (my wife & I) have had a self-managed super fund (SMSF) since 1996. As rules concerning super pensions etc have changed since the date of my deed, can we simply sign a current, new, trust deed to make it effective for our requirements, or do I need to amend the relevant clauses in the old … [Read more...]

Super rumour: Government to ban anti-detriment payments?

Recently, financial publications have been reporting on the use of anti-detriment payments, and the possibility that the federal government plans to ban such payments. This speculation continues even though at the time of writing, we do not have an official government response to the 2015 Tax … [Read more...]

How can a SMSF live forever?

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. I thought that the super money could not remain in the fund indefinitely … [Read more...]

SuperGuide checklist: 10 more ways to boost your super

Note: This is the second article in a special two-part series that SuperGuide updates regularly, designed to help SuperGuide readers plan for retirement. This article, and the first article in the series, Super checklist: 10 ways to save your super (link also appears at the end of this article), is … [Read more...]

Does the government’s co-contribution count towards my contributions cap?

Q: Does a co-contribution received after using up the total bring forward cap of $540,000 mean that an excess contribution has been made, or is the Government co-contribution excluded from the after-tax contribution cap?A: A superannuation co-contribution is a super contribution paid by the … [Read more...]

SMSFs: If I die young, will my wife pay super tax on the life insurance payout?

Q: I have a life insurance policy owned by my SMSF worth approximately $2 million. Currently there is only about $80,000 accumulated in the fund. I am 40 years old. If I die tomorrow is my wife able access an income stream from the fund tax-free? For instance, upon my death if this $2 million was … [Read more...]

No tax in retirement because you SAPTO (updated rates)

This article is updated annually with new rates, or updated periodically to highlight changes (if any) to the Seniors & Pensioners Tax Offset (SAPTO) rules. This article includes SAPTO rates for the 2015/2016, 2014/2015, 2013/2014, and 2012/2013 years, and SATO rates for the 2011/2012, … [Read more...]

More retirees eligible for Seniors Health Card (CSHC), but harsher income test

Effective since 20 September 2015, the income test thresholds for the Commonwealth Seniors Health Card (CSHC) have increased again, in line with the federal government’s promise to index the thresholds annually.CSHC income thresholds are now indexed annually in line with CPI (inflation). The … [Read more...]