Q: What is the difference between a binding death benefit nomination and a reversionary pension? Should a retail fund offer a reversionary pension option? The forms for my fund only mention binding death nominations.The terminology surrounding superannuation and death can be confusing and intimidating.A ... Read more
Concessional contributions cap: 10 super facts you should know
We receive many questions about the concessional contributions caps. We regularly update readers on any changes to the contributions caps (and other super changes), and the implications of such changes on super strategies.The list of 10 Q&As set out below answer many of questions that we have received on the ... Read more
Estate planning: 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 because eventually ... Read more
Super contributions before and after age 65
Q: I have a three part question.I turn 65 in January 2018 and would like to make a $325,000 contribution by way of off-market share transfers and cash to my SMSF before I turn 65 ($25K deductible super contributions and $300K non-deductible under the bring forward rules). Will I be able to take advantage of the ... Read more
Tax-deductible super contributions: No longer need to meet 10% income test
Q: I work for myself but I also have a part-time job. I have been told that even though I receive SG from my part-time employer, I can also make tax-deductible super contributions. Is that true? And if it is true, how does it work?All Australians are eligible to make tax-deductible super contributions. A ... Read more
Concessional contributions: What form do I use to claim a tax deduction?
Q: I want to make a tax-deductible super contribution to my super fund, in this case, a SMSF, although I also have a super account with an industry fund. 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 ... Read more
Managing capital gains tax with super contributions
Q: I am about to make a capital gain of about $200,000 on an investment property I have owned for several years. My marginal tax rate is 32.5% 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 a self-managed fund), so I can save some money for the ... Read more
Capital gains: Reducing tax via super contributions
Q: I have a self-managed super fund (SMSF) and I also have two investment properties in my personal name. When I sell the properties, I will be required to pay capital gains tax. Can this capital gains tax be offset by a contribution to the SMSF which would be tax-deductible? Would there be a 15% contributions tax? I ... Read more
Employees can now make tax-deductible super contributions (since July 2017)
Note: The option for employees to make tax-deductible super contributions became law on 29 November 2016, and took effect from 1 July 2017.As an employee, the general rule when making super contributions is, you can take advantage of the concessional (before-tax) contributions rules by salary sacrificing, or by ... Read more
Who can make tax-deductible super contributions?
Note: Since 1 July 2017, all eligible Australians under the age of 75 can claim tax deductions for personal super contributions, subject to the annual concessional contributions cap. Such a measure can assist Australians who may be partly self-employed and partly employed, or individuals who work for employers who ... Read more
Superannuation contributions: Wearing two caps for 2017/2018 year
Q: Are the caps relating to ‘concessional’ and ‘non-concessional’ contributions regarded as separate? Put simply, can I contribute $25,000 concessional and $300,000 non-concessional sums (a total contribution of $325,000) to my super fund for the 2017/2018 year?A: The contributions caps are definitely separate ... Read more
Boost your spouse’s retirement kitty: 10 things you need to know
These days it’s rare for a government to be more generous about handing out benefits, but when it comes to helping boost your spouse’s super, that infrequent event is set to happen.From 1 July 2017, the maximum income threshold for the spouse contributions tax offset jumps from its current measly upper limit of ... Read more
