Superannuation

Superannuation

Self Managed Super Funds

A Grade Tax Accountants Penrith are able to provide superannuation advice to our clients. We can assist with the establishment of Self Managed Superannuation Funds for those people wanting to take control of their superannuation investment. We have helped many clients including those wishing to borrow within their SMSF to purchase investment property.

We can also assist with explaining the tax advantages associated with Self Managed Superannuation Funds and assist you to comply with your ongoing obligations as a Trustee of a Self Managed Superannuation Fund. A key responsibility is the provision of audited Financial Reports and Tax Returns for the Fund.

SMSF Audit

Max Connelly is also an ASIC accredited SMSF auditor. So if you need your SMSF audited, we can assist.

Tax Effective Investments in Super

Superannuation has the potential to be a very tax effective investment, and is one of the best vehicles to fund retirement. But what are some options to consider?

Employees: Salary sacrificing into super. To ‘salary sacrifice’ means to contribute before-tax income, or to swap your salary for increased employer super contributions. This means that it is possible to avoid paying your own Marginal Tax Rate (or your income tax rate) in favour of the super rate of up to 15%. When you salary sacrifice your income into super, this type of super contribution is only taxed up to 15%. On top of this, salary sacrificing effectively reduces your assessable income – this could mean pushing your assessable income into a lower tax bracket and consequently paying less overall tax outside of super as well! For example, John is on a $90,000 salary (on a 39.5% Marginal Tax Rate (MTR). By salary sacrificing 20% of his income into super, his taxable income will reduce to $72,000, and income taxes paid will decrease by $6,470. 

Self-employed: Claim your super contribution as a tax deduction. Since 1 July 2007, contributions for self employed individuals are 100% deductible as long as you don't exceed the Contribution Limits (see below).

  • If you are considering a contribution to super, ask us at A Grade Tax Accountants Penrith about the most beneficial timing and strategy for you.

SMSF Establishment Statistics

 According to the ATO SMSF statistical report for September 2013, individuals running SMSF's control nearly a third ($520.5 billion) of the $1.7 trillion invested via Australian superannuation funds. Ten years ago DIY super funds represented one-tenth (10%) of all superannuation money.

By September 2013, the total number of SMSF's stood at 516,925.

Contribution Limits

2013 - 2014 = $25,000 unless you are aged over 59 years on 30th June 2013, which increases the limit to $35,000.

 

2014 - 2015 = $30,000 unless you are aged over 49 years on 30th June 2014, which increases the limit to $35,000.

For more information go to: Contribution Limits

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