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Information You won’t get from Unlicensed Accountants #77

Along with a 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 a Superannuation Boost and an Extra tax deduction?

You may be eligible to use ‘Catch Up’ Concessional Contributions to achieve the above result.

One box that must be ticked to enable you to target this is your superannuation balance needs to be less than $500k as at the most recent 30 June, in this case 2020.

If you satisfy this rule, you will be eligible to use the ‘Catch Up’ provisions.

This will allow you to carry forward up to 5 years unused portions of your CC for amounts that you didn’t used since the 2018 /2019 financial year

A couple of examples of where this may benefit investors is:

  1. Where an investor may have realised a large capital gain from the sale of a property or shares for example. The superannuant could use the catch up CC to soften the impact of this Capital Gains Tax (CGT) event as well as boost their super
  2. Where an investor was on unpaid leave or did not work a full year they can use the ‘Catch Up’ provisions as the name suggests
  3. If a superannuant has moved onto a higher Marginal Tax Rate (MTR), they will get a larger tax deduction in that financial year by making a larger ‘Catch Up’ contributions in that financial year

“Well done is better than well said” – Benjamin Franklin.

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