Q: I am trying to understand how my super is taxed and it seems that it is taxed at every turn. Can you please explain when, and how, a super benefit is taxed? A: If it were not for tax, superannuation wouldn’t exist. You would simply invest in your own name. Superannuation is taxed at lower rates to encourage ... Read more
Non-concessional contributions: Re-contribution strategy still applies
Q: My wife turns 60 this financial year and it has always been my intention to cash out her portion of our small self-managed super fund (SMSF) and re-contribute it straight back in, so as to ensure that when she and I pass away, our children are not hit by tax. Is that still a valid strategy and if so, am I correct in ... Read more
Beyond the Royal Commission: 10 super strategies to protect your retirement
I am waiting for the final report of the Financial Services Royal Commission before I fully express what I think about the behaviour of the financial services industry as a whole, including the superannuation industry. Apart from the apparent incompetence and dishonesty of some players in the financial services sector, ... Read more
I’m retired. Can I make super contributions?
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 non-concessional ... 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
For over-65s: Ten tips when making super contributions
Australians can make voluntary superannuation contributions up to the age of 74 (that is, before you turn 75), and these super contributions can be concessional (before-tax) or non-concessional (after-tax) contributions. If you’re aged 65 or over however, then you must satisfy a work test, if you intend to make super ... Read more
Super contributions beyond the age of 75
Q: If employers must now make Superannuation Guarantee contributions for over-70s, does this mean that additional concessional or non-concessional contributions can also be made by those aged over 75? A: The short answer is ‘no’. Although employers are now required to make Superannuation Guarantees for any eligible ... Read more
Australia not ready for Age Pension age of 70 years
Russia has just raised the pension age for men to 65 years (from 60 years) and for women to 60 years (from 55 years). The original plan was to raise pension age for women to 63 years, but after national uproar, Vladimir Putin relented and only increased pension age for women to 60 years but still raised male pension ... Read more
More retirees eligible for Seniors Health Card (CSHC) from September 2018
Taking effecting from 20 September 2018, 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 first indexation ... 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 income 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
Non-cash contributions, CGT and contributions caps
Q: My husband and I, both near 60, plan to spend around $700,000 of our cash to buy shares soon. We don’t have a trust structure or company (both PAYG) and wondered how/if we could buy them in the name of our self-managed super fund? How do we get the cash from our names to the super fund? I’ve read about in-specie ... Read more
