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Strategies to boost your SMSF

Posted on Dec 17, 2015 by admin

There are currently more than 1000 self-managed superannuation accounts that have balances of more than $10 million. Almost 40,000 other self-managed accounts have at least $2 million.

Want to know what kind of strategies can help you achieve the same for your self-managed account?

Make large non-concessional contributions
The most common type of non-concessional contributions are personal contributions made by an SMSF member for which no income tax deduction is claimed. These types of contributions are currently capped at $180,000 a year.

But that figure can be boosted significantly under the bring-forward rule that allows three years of contributions ($540,000) to be made in one year. That means an SMSF with four members can make a total non-concessional contribution of $2.16 million.

Hold-off any capital gains until retirement
Those who own assets with significant capital gains reduce the amount of CGT payable by simply timing the sale of the assets.

There is a lifetime limit of $500,000 CGT exemption on the sale of an active business asset. For those who are under 55, the proceeds from the sale of the asset must be paid into a superannuation fund or retirement savings account.

Those who intend to pass the assets on to beneficiaries can save them tax in the future, as super funds don’t pay CGT once the trustee has commenced a pension. The 50 per cent CGT discount may also be applied if the asset was owned for more than 12 months.

Do business with your own business
Super funds cannot buy assets from owners, but there are exceptions, such as listed shares and land or buildings exclusively used for business purposes.

This exemption, for example, can help create a situation where a family business pays rent to their SMSF. The business can then claim a deduction equal to 30 per cent of the rent, and, as income of the fund, the rent money will only be taxed at 15 per cent.

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Sometimes the only way to understand a person’s business or financial situation is by meeting face-to-face. All new clients or people looking to speak with an accounting professional are offered an initial consultation with the first hour at no charge.

If you would like a confidential discussion simply call 07 5510 3799 to arrange a meeting

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