To get your superannuation into its best tax position, for this
year-end and into 2015-16 and beyond, the following tips may help
point your thoughts in the right direction.
Maximise after-tax contributions
Double-check your non-concessional (after-tax) contribution
figures to make sure contributions are made up to the allowable cap
— now $180,000 — before the end of the 2014-15
financial year. Generally, unused cap amounts are not carried over
to future financial years.
Consider salary sacrificing
Salary sacrificing is never a bad consideration to make. If you
are likely to receive a bonus before year-end, you can always
salary sacrifice it into superannuation rather than receiving it as
cash to take advantage of the 15% concessional tax rate. However,
don't forget about excess contributions tax risks.
Remember directed termination payments into super are
Since 30 June 2012, employment termination payments can't be
directed to superannuation as directed termination payments. All
employment termination payments are now treated as personal
contributions, and therefore may count toward your non-concessional
cap for the year.
Using personal deductible contributions to offset a capital
If you satisfy super's "10% rule", you may be
eligible to claim a deduction for your personal super
contributions. A deduction could be used to possibly offset a
capital gain from the sale of one or more assets. Personal
deductible contributions are subject to the general concessional
contributions cap. For 2014-15 this cap is $30,000, but from 1 July
2014 a higher $35,000 cap also applies for people 50 and over.
Individuals over 65 will also need to meet the "gainful
Split super contributions with your spouse
If you decide to go down this route, note the full amount of the
original contribution counts toward your concessional contributions
cap. Any amount over the cap will be included in your assessable
income and taxed at your marginal rate, making you also liable for
the excess concessional contributions charge. In this case, you
will get a non-refundable tax offset equal to the 15% tax paid by
your fund on this amount.
In general, it's good practice to monitor your super
contributions to make sure you don't inadvertently exceed a cap
— especially contributions made quarterly, which may result
in a payment bridging two financial years and affecting the caps of
the latter year.
SMSFs: Keep within in-house asset rules
If your fund's holding exceeds 5% limit on in-house assets,
reduce it by 30 June this year.
SMSFs: Make insurance more affordable
Purchase life and total and permanent disability insurance via
your SMSF to benefit from the general 15% tax concessions.
SMSF in pension phase drawdowns
Make sure you have drawn down the required minimums by 30 June,
or the investment income derived from the assets supporting that
pension may no longer be exempt from tax. If you're almost 60
and want to cash out some of your super, consider waiting until
over 60 to minimise potential lump sum tax.
ATO has released 2 draft fact sheets relating to the 2010 amendments to corporate law and tax in relation to dividends.
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