Welcome to ESUPERFUND’s May Newsletter.
In this issue we provide you with some detailed information on the Concessional Contributions Cap and highlight some tax implications of making additional contributions or rollovers to your SMSF after commencing a Pension.
We also introduce you to a case study on residency rules and the latest news released by the ATO on loan arrangements that contravene super laws.
Client Services Manager
Concessional Contributions Cap for the 2015 Financial Year
When you are considering making last-minute contributions to your SMSF are you taking the Contributions Cap into consideration?
The following limits apply per Member for Concessional Contributions (including the total of your Employer, Salary Sacrifice and Personal Concessional Contributions contributed under the 10% rule) made into your SMSF:
|Aged over 50 at any time during the 2015 Financial Year
|Aged under 50 for entire 2015 Financial Year
If you are over age 65 and under age 74, please be aware that you must pass a Work Test in order to make a Concessional Contribution into your SMSF.
Please click here for more information on Concessional Contributions Cap and Work Test.
New ATO case study: Breaching SMSF residency rules
Are you thinking about moving overseas? If the answer is yes, please have a look at the newly released ATO case study for some detailed information on the SMSF residency rules.
Do You Know?
Additional Contributions and Rollovers cannot be added to an existing Pension directly
Unlike Retail Funds, a SMSF can accept Contributions (subject to the normal Contributions Rules) and Rollovers after a Pension has commenced.
However, super regulations do not permit the capital supporting a Pension to be added to by way of a contribution or rollover after the Pension has commenced. As a result any amounts contributed or rolled over after the commencement of a Pension will sit outside your Pension in your accumulation account. Further information on the tax implications of making additional contributions or rollovers to your SMSF after commencing a Pension can be found here.
Loan arrangements that contravene super laws
Has someone asked you to invest your SMSF funds into a trust, company or investment product, and then offered to lend some or all of that money back to you, your company or any entity you control?
If the answer is yes, then it is likely this arrangement contravenes superannuation laws.
Please visit the ATO website here for detailed information on loan arrangements that contravene super laws.
Just a note of thanks, we have just received our 2013/2014 Tax Refund for our Super Fund. I would just like to say what a great service! All queries were answered promptly with no fuss. I love to speak with other retirees and always sing your praises. Once again thanks for a fantastic service.
Follow us on: