All Topics / Legal & Accounting / New Super Contribution Rules 1/7/07

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  • Profile photo of reelygood1reelygood1
    Participant
    @reelygood1
    Join Date: 2005
    Post Count: 65

    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?
    Don

    djr

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    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

    Profile photo of reelygood1reelygood1
    Participant
    @reelygood1
    Join Date: 2005
    Post Count: 65

    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
    Don

    djr

Viewing 3 posts - 1 through 3 (of 3 total)

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