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There is a bill before parliament currently to enable older retired Australians to downsize their house and top up their super with money left over after purchasing a smaller house, avoiding losing their entitlement for an age pension. In considering a purchase now (current house just sold), is there any way that I can benefit from the potential passage of the new law in the near future?
I am keen to create a separate pension account within my SMSF from new funds contributed as undeducted non-concessional contributions, and draw down my old pension which is mainly deducted taxable super. As most of the assets within the pension fund are illiquid real estate and shares, I would use cash from outside the fund to contribute and create this liquidity. I do not run separate bank accounts for pension and accumulation accounts. I use an actuary. I understand that I need to empty out the accumulation account so it has a nil balance, and create the new pension as soon as I make the contribution. I am hoping, that way, the new pension is from non-concessional contributions, and therefore, tax-free funds. Do I need to have the calculations done for the accumulation account to the date I do this, so the account is effectively emptied on that date? What kind of administrative problems could I face through having two pension accounts?
Do I need to pass the work test at age 59 to make a $200,000 non-concessional super contribution and claim a tax deduction to reduce capital gains tax after selling an investment property? Can I then put in another $100,000 non-concessional super contribution to take this up to the maximum of $300,000 from sale of another investment property? If I did not put these non-concessional funds into super until after age 60, would tax payable in the SMSF still be the same?
My wife and I have just sold our family home in the suburbs for a considerable sum and have entered into a contract to buy a large apartment in the city. The apartment will not be completed for at least three years and we are thinking of buying a property to live in until then. Is it possible to purchase a townhouse as an investment through our SMSF, live in it for three years before the city apartment is built, pay appropriate rent for that period, then move from that townhouse into the apartment?
I have recently retired, am single and aged 66. I’m assuming with the Seniors and Pensioners Tax Offset (SAPTO) I can earn an amount close to $32,000 tax-free, or am I mistaken? I also assume that I can increase this $32,000 even further by investing in Australian shares paying franked dividends. Using the tax offsets, firstly from franking credits and secondly from SAPTO, I believe one could earn close to $40,000 per annum without paying income tax. Again, am I mistaken?
I refer to your article no limit on super, just pension. The article implies that you can continue to contribute to super irrespective of the $1.6m cap. The financial advice I have recently received stated that as I am now over the $1.6m cap in the accumulation phase as I am still working I am not entitled to add non concessional contributions without incurring excess tax. Also concessional contributions can’t be added either as the defined benefit value exceeds the $25k cap. Is this generally correct? Thanks Tony
On 27 July 2016 Bruce Brammall wrote a very interesting paper called "How did your SMSF perform in FY16". He demonstrated that Property securities both Australian and International and International fixed interest were the big winners. Do you know if he produced something similar for FY 2017?
I have money invested in term deposits. I have used different banks with amounts of $250,000.00 to get government cover, Is this necessary, or is every term deposit treated individually, for example are 4 separate deposits in the one bank treated as a total of $1000000.00 under the guarantee, or as 4 separate investments? Also if one invests TD's in SMSF and also in personal name, are these treated as separate entities?
I am 55 and have an insurance policy for $1 million in my SMSF. At my age the policy premiums are increasing rather steeply. I didn’t mind so much when I was able to put in $35,000 a year, but it obviously makes up a bigger portion of the $25,000 that we are limited to putting in now. What are my options?