Self funded superannuation and property

Viewing 7 posts - 1 through 7 (of 7 total)

wagonmaster
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@wagonmaster
Join Date: 2003
Post Count: 2
May 16, 2006 - 12:37 am
Hi Steve,
Could you please clear something up for me, although it may be a little early to give a definite answer.
I read in the paper on Saturday, that under the new legislation being introduced as a result of the last budget, that property investments in retirement could be held in the name of a superannuation fund and the rent and capital gain would be able to be received tax free.
Does this mean then, that if I have investment properties that are fully paid for and debt free, then I could start up a self managed superannuation fund and transfer them over into it and receive the rent and any future capital gain tax free?
I know that under the old definition of “Business real property” this was not possible, but are there going to be changes made under new legislation to allow me to do this?
Regards,
Jeff
gmh454
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@gmh454
Join Date: 2003
Post Count: 537
May 16, 2006 - 3:40 am
I know what you mean, and we will not know till all the fine print is known.
I have always found in past budgets.
“That what the treasurer giveth, the ATO taketh away”
we will see.
Rgds Terry
wagonmaster
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@wagonmaster
Join Date: 2003
Post Count: 2
May 16, 2006 - 4:11 am
Thanks Terry,
I guess we’ll just have to wait and see as you said.
Jeff
BMW330Ci
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@bmw330ci
Join Date: 2006
Post Count: 37
May 19, 2006 - 12:03 pm
I was informed that any income from the super fund will be taxed at a flat rate of 15%. You can then transfer it to yourself.
hb
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@hb
Join Date: 2005
Post Count: 179
May 19, 2006 - 2:44 pm
Sadly Wagonmaster, if you didn’t have the SMSF set up before 9 may (budget night) and the property in it….your history.
why…..
Simply to stop the exploitation of this generous super system.
If your over 50 and in the transition stage to retirement, you will be allow 150k a year for 3 years max. total 450k (this idea is under review)
Under 50.. its max of 50k
receive the rent and any future capital gain tax free?
WRONG
you will now pay 15% tax of earnings…..
but you will pay NO TAX on withdrawals
under the old system…once your retired..INCOME WAS TAX FREE
but you paid 15% tax on withdrawals, except that you received a 15% rebate upto an amount which pretty well made the withdraw TAX FREE
have you noticed something……..
Under the old complicated system when you retire……
INCOME TAX FREE on EARNINGS…and generally withdrawals TAX FREE
Under the new easier system when you retire…..
INCOME 15% on EARNINGS….withdrawals TAX FREE
No wonder our treasurer was smiling so much……..
who’s conning who????
hb
hb
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@hb
Join Date: 2005
Post Count: 179
May 19, 2006 - 3:29 pm
Hi wagonmaster
heres a extract taken from Babara Smiths piece “Budget Takes Away too”
“Winners and losers
The removal of the RBL means that people who are overfunded are the big winners……(may our politicians)
but there are also losers, because the governement is giving with one hand and taking away with the other. It has failed to take into account long term plans that individuals have already put in place, such as building equity in a property outside of super, with the intention of selling it and making a large undeducted contribution just before retirement. This is due to the instant imposition of an annual limit of $150k now placed on undeducted contributions”
hb
hb
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@hb
Join Date: 2005
Post Count: 179
May 25, 2006 - 11:02 am
hi
just to clarify retirement………………..
when you retire FULL TIME…income earnings and withdrawals TAX FREE
but if you decide to keep working after 60 and still access your super f(or extra money) than the earnings will be TAXed at 15%…
withdrawal TAX FREE
simple hey
hb