Hi All,
Have read in paper recently that from 1/7/07 you can make as much contribution to your super as you wish. My wife and I have been paying $10K every year which is the max amount that is 100% tax deductable to our SMSF, after that the tax deduction goes down to 75% I think from memory. If this is the case I believe you can now bring your capital gain tax income right down by making a contibution to your super which is taxed at 10%. I will be talking to my accountant about this soon, but just would like to hear from any other forum readers on their thoughts?
Dondjr
Hi Don
I think you have slighly misunderstood the new Super Laws which believe it or not are supposed to be simplified.
1) Between 10 May 2006 – 30 June 2007 you are able to make an undeducted contribution of upto $1,000,000. The capping of UDV’s $150K (Or $450K using a 3 year averaging rule) will apply from July 1 2007.
2) Contribution Tax to your Super Fund is 15% however the Capital Gains Tax on an asset held for 1 year and 1 day is 2/3rd of this being 10%
Needless to say Superanuation is now one of the most Tax effective vehicles for non geared investment.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner.
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Hi Richard,
Thanks for clearing that up for me, do you know if the $450K can be paid after 1/7/07 as once only payment in the 3 year period or does it have to be 150K per year? I will be playing squash with my accountant tomorrow, but may as well find out from you. Like most busy accountants, I usually find out more when we play squash, can never pin him down at work.Regards
Dondjr
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