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MGAA AboutTax Blog
Act Now, before this budget changes everything, again!
14/04/2016 by Manu Gupta | M G Arthur & AssociatesAt best, we can call it a calculated risk, at worst a rumour.
Based on what PM Malcolm Turnbull and Treasurer Scott Morrison seem to be saying in public media, and based on what experts in the industry seem to be indicating, this year's budget could be a watershed in Superannuation Tax changes.
We share with you some of the changes that might happen, and suggest action plan so you can take advantage of the current generous concessions, before it is too late.
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Some Changes that might happen |
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Salary Sacrifice (concessional) limits for super contribution could be reduced
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In order to take advantage of tax deductible salary sacrifice (or pre-tax contribution), ensure you top up your employer / pre-tax super contribution before budget night. |
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Post tax (non-concessional) limits for super contribution may be reduced.
This action might be aimed at scrapping 'withdrawal and re-contribution strategy'. |
Taxpayers have used this strategy over the years to steadily convert their taxed component in super into tax free component. This substantially reduces tax on death benefits paid to adult children. Contact your advisor to see if you could do a withdrawal and re-contribution strategy before budget night. |
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Transition to retirement income stream (TRIS) benefit may be limited. Currently, you can start TRIS to withdraw tax free pension, and get tax benefit via salary sacrifice into super, provided you are above 60yrs of age. Entry to TRIS may be restricted to eligible taxpayers who reduce their working hours to under 30 hours a week (move from full time to part time roles) |
This strategy has been used by many taxpayers in their golden age (above 60 years of age) to reduce their tax on salary or business income, yet ensuring their cash flow is not impacted. Contact your advisor to see if you could start your TRIS before budget night. In most probability, TRIS started before budget night would not be impacted by any possible changes to this policy area.
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If you would like assistance with working out the best possible strategy for your personal scenario, please do not hesitate to contact us.
Superannuation - Know your numbers
07/04/2015 by Shahnaaz Kotwal & Manu Gupta | M G Arthur & Associates |
Superannuation is a way to save for our retirement and that it has some tax savings! However, some tricky questions like, how much can you contribute into your super, when can you access your super money, what do you need to know as an employer, etc could leave anyone scratching his head. Yes, you guessed it right – there are lots of numbers that are involved with super and only to make it a little more complicated the numbers change with the moods of the federal budgets. This article aims to bring together some key information in a simple question & answer format to help you, our clients and readers, plan your Super. |