For the 2012/2013 year, only one concessional (before-tax) contributions cap exists for all ages, and that cap is $25,000. Before July 2012, we had a concessional cap for under-50s and a concessional cap for those 50 years and over. From the 2013/2014 year, we will have a special concessional cap … [Read more...]
We receive dozens of emails requesting information about moving pension funds from the United Kingdom into an Australian superannuation fund. For the UK to permit an individual to transfer retirement monies to another country, the UK government (more specifically Her Majesty Revenue and Customs, … [Read more...]
I receive a lot of questions from readers seeking information about how the non-concessional (after-tax) super contributions rules work; in particular, how the bring-forward rule works. More recently I have received several emails from readers who have fallen foul of the bring-forward rules and … [Read more...]
When we first launched SuperGuide just over 4 years ago, I wrote an article explaining why tax-free super in retirement is a non-issue for most women. The reason for making this statement, and which remains valid 4 years later, was that women, on average, have such low super account balances that … [Read more...]
You can make superannuation contributions up to the age of 74, and these can be concessional (before-tax) or non-concessional (after-tax) contributions. If you’re aged 65 or over, then you must satisfy a work test if you intend to make super contributions. Anyone under the age of 65 can make super … [Read more...]
Q: Under the 2-year bring-forward of non-concessional contributions, if a person makes an after-tax contribution of $150,001 when age 64, can he continue to contribute the balance of the $450,000 anytime during the next 2 years without having to satisfying the work test? Answer: In this … [Read more...]
Q: If you turn 65 and retire after 1 July 2012, can you still make the $450,000 bring-forward non-concessional contribution as long as you make the contribution before 30 June 2013? Or do you have to satisfy the work test to do so? Answer: For the benefit of other readers, I’ll first explain … [Read more...]
Q: Thanks for your website and advice. Just a quick question: I turned 65 in January 2013. So I was 64 years of age for a large part of the 2012/2013 financial year, but of course I turned 65 during the 2012/2013 financial year, that is, in January 2013. My understanding is that because I am under … [Read more...]
Australian baby boomers are underestimating how much they will need for a comfortable retirement, even though they have high expectations for their retirement lifestyle, based on a survey conducted by super fund REST Industry Super. REST Industry Super commissioned the survey that interviewed … [Read more...]
Q: I am 62 years of age and retired. I have recently commenced an account-based pension from my SMSF. Can I still make non-concessional contributions to that fund? A: I have divided your question into two parts. 1. Can someone who is 62 years of age and retired, continue to make super … [Read more...]
Q: My husband turns 57 in January. We have a SMSF and he is going to commence pension phase. He is essentially retired and only worked 4 hours this financial year. But what if he decides to work again in six months’ time? The account-based pension allows for lump sum withdrawals which is very … [Read more...]
Q: I own a unit as an investment property. I would like to keep this unit as long as possible. The unit is a safe income stream and a safe haven against market uncertainty. However, if I have to sell it later, I won’t be able to put the money into my SMSF because of the work test (as it is … [Read more...]
Q: For a taxpayer aged over 50, can a total contribution of $175,000 this year (150K non concessional and 25k concessional) and a total contribution of $475,000 next financial year (450k non concessional and 25K concessional) be made without attracting penalty tax? A: The short answer is … [Read more...]
Under the superannuation rules, the annual superannuation contributions caps were designed to be indexed in line with movements in average wages. Wages have obviously increased since July 2007 (when the new contribution rules were introduced), but since July 2007, the concessional (before-tax) and … [Read more...]
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...]
