Q: I understand the three-year bring-forward rule now allows you to contribute up to $300,000 in after-tax contributions. My question is: What date does the second three-year period start? For example, if I contributed $300,000 on 28 Dec 2018, does that mean I can contribute another $300,000 on or after 1 July 2021 (or ... Read more
The tax treatment of super benefits and the proportioning rule
The tax treatment of a superannuation benefit depends on a number of factors: the age of the person; whether the benefit comprises a tax free component and or a taxable component; whether the benefit is in the form of a lump sum or an income stream (i.e. a pension); and whether the taxable component ... Read more
Bring-forward rule: A definitive super guide
Note: The information in this article relates to the 2018/2019 financial year and the 2017/2018 financial year. The bring-forward rule allows an eligible Australian to contribute up to 3 years’ worth of after-tax contributions (non-concessional contributions) in one year, representing the annual non-concessional cap ... Read more
Over-65s work test: How does it operate?
Super alert! Taking effect from July 2019 , the federal government has introduced a one-year exemption from the over-65s work test for Australians aged 65 to 74 with superannuation balances of less than $300,000. What this means is that, for the first year an individual doesn’t meet work test requirement, an ... Read more
Super contributions before and after age 65
Q: I have a three-part question. I turn 65 in January 2019 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
SMSF providers: What should I look for when setting up my DIY super fund?
Q: I am about to set-up my self-managed super fund (SMSF) but I am not sure who to handle this for me. Some online providers are reasonably priced but I am concerned about access and professionalism as they are online only. I have checked out various other providers (but unsure who to go with). Have you done any ... Read more
Making super contributions: Aged 65 years or older
Q: From reading SuperGuide articles, I can see that since July 2017, there is no longer a special contributions cap for people between 50 and 74 years, but a general concessional contribution cap of $25,000 a year for all age groups. I can also see that for non-concessional contributions, the cap is now $100,000. Is ... Read more
SMSF audit: Where is your fund’s trust deed and investment strategy?
Q: Do I need to provide a copy of my super fund’s trust deed and financial strategy to my SMSF fund auditor in order to complete the auditing process? ‘Yes’ is the answer, based on the ATO website’s guidance, and based on the super rules that approved SMSF auditors are supposed to review to ensure SMSF trustees are ... Read more
Accessing super: Turning 55 (or 56 or 57 or 58 or 59) is not enough
Q: I am 53 years old, born September 1964. I thought I could access my super funds from age 55 but I have been told I can’t access my funds until age 60. Is this correct? And, when I withdraw my super benefits, is there any tax payable? A: The general rule is that you must have reached your preservation age AND ... Read more
Preservation age: I’m 58. Can I withdraw my super benefits?
Q: Can you please tell me whether I can withdraw my super benefits when I retire at age 58? A: This answer assumes that your super benefits are preserved, and the answer to your question depends on your date of birth. Under normal circumstances, access to superannuation benefits requires certain conditions ... Read more
Case study: I’m 58 with $250,000 in super. Will my super be taxed?
Q: I turned 58 in July 2018, and I’m thinking of retiring before I turn 60. I would like to know whether I would have to pay tax on my superannuation. I know that after I turn 60, it’s tax-free, so my inquiry is regarding the period until I turn 60. My super money consists of compulsory employer contributions, and ... Read more
I’m retired. If I return to work, what happens to my SMSF pension?
Q: My husband turns 60 in January. We have an SMSF and he is going to commence retirement 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 advantageous and would ... Read more
