Along with this raft of legislative change, the Australian Securities and Investments Commission (ASIC) has also introduced new licensing requirements for accountants who work with and advise Self Managed Superannuation Fund (SMSF) Trustees. Only approx. 10% of accountants have complied with these changes to date.
As such if you, as many, consider your accountant would be your 1st port of call for Financial Advice, they will likely advise you, they are unable to provide the information you require & should consult a qualified Financial Adviser / Planner.
This is general advice only and you should seek expert financial advice from a qualified financial adviser before acting on any of the information covered in these topics.
Want an extra tax deduction in FY 2019/2020?
One box to tick first, your total superannuation balance needed to be less than $500,000 as at 30 June 2019. If you satisfy this test, you will be eligible to use the new concessional contribution ‘catch-up’ provision which allows you to carry forward any unused concessional contributions under the $25,000 cap from the previous financial year.
For example, if your concessional contributions for FY 2018/2019 were $10,000, you will be eligible to contribute up to $40,000 in 2019/2020.
A couple of examples of where this may benefit investors is:
- Where an investor may have realised a large capital gain in FY 2019/2020 from the sale of a property or shares. Making a larger concessional contribution under the catch-up provision could help to soften the impact of any resulting tax liability.
- Where an investor was on unpaid leave or did not work a full year in FY 2018/2019, they can use the catch-up to make a larger contribution in FY 2019 /2020 to boost their retirement savings and reduce their personal income tax.
Importantly investors are eligible to accumulate up to 5 years of unused concessional contributions, so some forward planning may be required to maximise the advantage of the catch-up provisions.
”Our greatest weakness lies in giving up. The most certain way to succeed is to always try just one more time. ” – Thomas Edison
