Eligibility for tax-deductible super contributions

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Question: I am self-employed and I have never made super contributions in my life. Am I eligible to make super contributions, and can I claim a tax deduction for those super contributions?

Is the Government’s co-contribution included in my contributions cap?

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Question: Does a co-contribution received after using up the total bring forward cap of $450,000 mean that an excess contribution has been made, or is the Government co-contribution excluded from the after-tax contribution cap?

New Rules for SMSF

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SMSF trustees now have to take additional care with respect to the investment strategies of funds and valuation of SMSF assets, as the ATO (Australian Tax Office) has effectuated fresh SMSF rules intended to “address potential risks and strengthen the regulatory framework in which SMSFs operate” since 1 July 2012.

Super contributions after retirement

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Question: 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?


Superannuation rights of same-sex couples

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The refusal of the Australian parliament in September 2012 to allow same-sex marriages was undoubtedly disappointing for homosexual couples looking to legalize their commitment. This, however, does not mean that same-sex relationships are considered illegitimate with respect to the superannuation entitlements. In terms of superannuation benefits, homosexual couples have the same or similar rights as married or de facto heterosexual couples, although this was not the case until relatively recently.

Tax-deductible super contributions: how much to claim?

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Question: If I make a personal concessional payment of $25,000 (tax-deductible) and a personal $150,000 non-concessional (non-tax deductible) payment into my SMSF and my personal taxable income for 2012/2013 is $20,000, are there possible tax penalties because I’m claiming $5,000 more than my taxable income, that is, will $5,000 be added to my non-concessional amount thus making it $155,000?

Tax Relief for SMSF Income Streams

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Tax Relief for SMSF Income Streams – Important Announcement
In its 2012-13 Mid Year Economic and Fiscal Outlook, the government has announced it will legislate to allow a tax exemption to continue for the period of time after the death of a pensioner. This important announcement suggest that parts of last year's TR 2011/D3 that indicated a pension would cease following the death of a member, would appear to have become redundant.
More information about this legislative change read below.

Aged care, Retirement villages and the Family home

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Australia’s ageing population means that more retirees will be faced with the prospect of moving into aged care accommodation. For many, this can be challenging, as there are a range of factors to consider, from the cost of aged care to whether to sell their family home, and how this will impact on their social security entitlements.

Granny flats, Centrelink and Aged care

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As the Australian population continues to age, there is expected to be greater pressure on all areas of society, particularly income support, health and aged care. With many retirees expected to reconsider their accommodation requirements, financial advisers are likely to be faced with greater demand for information on alternative living arrangements. Granny flats are a popular form of aged care accommodation, with a number of social and economic advantages.

Aged care - case study

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Daisy is 83. She lives with her adult son, James, in the home she purchased with her late husband, Leigh, in 1978. This arrangement has been beneficial for both of them, as James has given emotional and financial support to Daisy, while her home has provided a base for him in-between his significant work travel commitments. 

Centrelink and Retirement Villages

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Over the next 40 years, the number of Australians aged 85 and over will more than quadruple — from around 400,000 in 2010 to 1.8 million by 2050, according to the Federal Government’s third intergenerational report. (Australian Government, 2010) This ageing population means more and more retirees will have to consider their living arrangements for the next stage of their life. As a person’s home has a huge impact on their health and happiness, it is essential all options are taken into account.

Centrelink and DVA age pensions

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With over 4 million Australians currently receiving income support benefits of one form or another from the Federal Government (Government), an understanding of how the system works and how clients can legitimately maximise their entitlements becomes a vital element of the financial planners’ expertise.

Explaining Commutable and Non-Commutable Allocated Pensions

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Allocated Pensions provide you with a flexible and tax effective ways to generate regular income payments in retirement, all the while retaining the ability to make lump sum withdrawals at any time (as long as they remain within product limits). The main advantage of Allocated Pensions is their flexibility. You are able to choose the amount of income you receive, subject to minimum rates.

Taxation of Allocated Pensions 

Transition to Retirement is Your Tax Haven

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Introduction In 2005 the Federal Government enacted what many call “Transition to Retirement” legislation, making changes to tax and superannuation laws to provide more flexibility – and more choices – for people aged fifty-five and older. Now, when you reach age fifty-five you can start to access some of your superannuation benefits without being required to permanently leave the workforce.

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