Thank you so much for your kind words! I'm glad to hear that the videos have been helpful to you. It's never too late to learn new strategies, and I'm happy to be able to provide this information. 🙏😊
Thanks for your extremely helpful dumbed down videos! Education in understanding Super is needed! But there is a lack of understanding when Retiring also. Maybe you can explain the tax payable in Death and taking advantage of re contribution - Tax minimising. Keep doing what you do! The oldies will come. 👏
Thank you for your kind words! I'm glad you find the videos helpful. I actually have a video in the pipeline about superannuation strategies for older Australians. It's a fascinating topic with lots of creative strategies. Stay tuned! 😊
thank you for making this video. I was not aware of at least two of the strategies and potential need to set up a side SMSF to minimise CGT. I feel much more empowered now to better manage for the future. very informative, well structured and clearly presented.
Thank you for your kind words! I'm glad to hear that you found the video informative and empowering. It's great to know that the strategies discussed were helpful for you. Stay tuned for more content! 😊
Thank you for making this video clear and informative great job! Re strategy 6, the $157,500 contribution to superfund in the example, he would be paying 15% tax within Superfund, despite his personal tax is zero. Just to be clear :)
Thanks for your comment! You’re right-the $157,500 contribution to the super fund would be subject to a 15% tax within the super fund, even if his personal tax rate is zero. Glad the video was clear and informative for you! 😊
A great little summary! Plenty of info that I was aware of only vaguely or was new to me. I like the way you do the examples: simple and clear, presented in a logical order as you speak. It makes them easy to follow and take in. Well done there!
Thank you so much for your kind words! I'm glad you found the summary helpful and that the examples were easy to follow. I aim to present information in a clear and logical way. Your feedback means a lot to me! 😊
Wow! Thanks a lot for sharing this relevant information on super, Rui Keep up the great work! Well defined content and very well explained… so outstanding!
Thank you so much for your kind words! I'm thrilled you found the information on super helpful. I'll keep working hard to provide well-defined and clear content. Your support means a lot! 😊
More to do with self-funded retirees that do not rely on Government pension and having assets outside of super. More what softwares financial planners use. Thank you ❤
Thank you! I'm glad to hear that you found the video helpful. Setting up an SMSF can be a great move. If you have any other questions or need further information, feel free to ask. Stay tuned for more videos on this topic!😊
Very informative video, Rui, and very well presented. Maybe you could help with this question. I am over 65 and still working, is it better to withdraw lump sums from the Accummulator or from the Pension Fund?
Thank you for your question! While I can't provide personalized financial advice, I can share some general information that might help. To fully answer your question, more details would be needed, such as your total super balance, the type of pension fund you have, and even your partner's circumstances if you have one. Here are some important points to consider: 1. At age 65, a minimum of 5% of your pension balance (if it is an account based pension) must be paid out. Beyond that, you can choose between accumulation or pension. 2. Investment returns on money in a pension account post-age 65 are tax-free, whereas returns on money in an accumulation account are taxed at 15%. From a tax perspective, a pension is more effective, and some people keep their accumulation account balance as small as possible, just enough to keep the account open for contributions. 3. If you have a partner receiving age pension or other Centrelink benefits that are asset-tested, money in your accumulation account is not assessed when you are under 67. This might lead some to 'hide' money in the accumulation account by transferring their pension back to the accumulation account. 4. A cash-out and re-contribution strategy is worth considering for some people to minimize personal income tax at this age. Which way to go is not black and white; it depends on personal circumstances. I will do a video on more superannuation strategies for pre-retirees and retirees soon. Stay tuned. Hope this helps! 😊
Can you pls do a post about sage withdrawal rate and review of any online calculators to model how much one can safely withdraw for those DIY retirees not using a financial planner. Great contents
Hi there, thank you for the suggestion! Financial modeling can indeed be complex, as it involves many factors such as health and life expectancy, inheritance plans, the interaction between assets and Centrelink benefits, and aged care considerations. Even financial planners' models have margins for error, making it challenging to prescribe a safe withdrawal rate. I'm not aware of any free online calculator that can account for all these variables. However, you might find the ASFA calculator helpful for a general picture, though it shouldn't replace professional financial advice. www.superguru.com.au/calculators I might do a video on various tools and calculators for DIY retirees. Stay tuned! 😊
Thank you for the very helpful video, Rui. I'm 65+, retired for years with SMSF in accumulation phase. Can CG from shares sold be used for personal concessional contribution like property CG in your example? What's the diff between Concessional Contribution and Voluntary Contribution?
Thanks so much for your question! Yes, capital gains from shares sold can be used for a personal concessional contribution, similar to property capital gains in my example. The key difference between concessional and voluntary contributions is that concessional contributions (like salary sacrifice and personal deductible contributions) are taxed at 15%, while voluntary contributions can be either concessional or non-concessional, with the latter not being taxed upon entering your super. Hope that helps!
Thank you for the suggestion! I'm currently planning a video on the Transition to Retirement scheme. Is there any specific aspect you’d like me to cover or any examples you’d find helpful? Stay tuned! 😊
Can we think about super spouse contributions to have 18% return per year? It is basically gives us $540 (18%) every year. If we invest $540 back in super that will compound massively. Because it is non-concessional so we pay no more tax.
Thanks for your comment! While the spouse contribution tax offset can be a nice boost, it's important to keep in mind that the 18% return is only on the amount you contribute for the offset, not your entire super balance. Reinvesting it can definitely help with compounding, but be sure to consider how this fits into your overall strategy. Always good to double-check with a financial adviser to make sure it's the best move for you!😀
Thank you! It's great to hear from someone who understands how tough it is to put out financial content in the current regulatory environment. Right now, I'm staying on the safe side by not providing much content on specific products. I am considering getting a general advice license down the track. If you know any good licensees for providing general advice licenses, please let me know. 😊
@@OZRuiShi I got legal advice and they said speaking about product classes (e.g. superannuation) counts as product advice so have delayed until find someone affordable. Best of luck!
@@AndrewBrown-ee9xg Yeah, the ASIC guidelines are indeed very strict. I'm creating content in the spirit of helping people and hope to stay on ASIC's good side. However, I agree that getting a general advice license sooner rather than later is a good idea. Best of luck with your plans as well!
Nice video and perfect timing. I have a question regarding strategy 4. Should I claim the tax deduction before adding money or after I added the full amount ?
Thank you for watching and for your kind words! The SMSF contribution reserving strategy is different from the carry-forward concessional contribution strategy, so it is not subject to the $500K limit. 😊
Thanks. Another question on this topic. Does the SMSF need to be established from FY18? Or can I establish one now and claim my carry forward from previous financial years?
@@roblee3395 You're welcome! For the carry-forward concessional contribution rule, you can establish an SMSF now and still use it, as long as your total super balance as of 30 June of the previous financial year is under $500k and you meet the eligibility criteria for making personal deductible super contributions (all good if you are between 18 to 67).
The five-year unused conscessional contribution cannot be used if your super balance exceeds $500K. What if you own property in an SMSF? Let’s say your SMSF has a $800K house with $600K debt. How does the tax office calculate the balance of your super?
Thanks for the question! The answer depends on when the loan (LRBA) was taken out. If the loan was before 1 July 2018, then the loan balance is NOT included in your total super balance. If it was entered on or after this date, the loan balance is NOT included unless you have attained age 65, are retired, or the lender is an associate. Check out this ATO page for more info; it has a useful flowchart to help determine your specific circumstances. Hope this helps! 😊www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/self-managed-super-funds-smsf/in-detail/smsf-resources/smsf-technical/limited-recourse-borrowing-arrangements-questions-and-answers/lrbas-and-total-superannuation-balance
Hi there, thank you for your question! The Medicare levy surcharge (MLS) is calculated based on a specific definition of income for MLS purposes. www.ato.gov.au/individuals-and-families/medicare-and-private-health-insurance/medicare-levy-surcharge/medicare-levy-surcharge-income-thresholds-and-rates#ato-IncomeforMedicarelevysurchargepurposes It's important to note that certain deductions, such as salary sacrifice, personal deductible super contributions, and investment losses, are added back to the taxable income. So, while making a personal deductible super contribution can reduce your taxable income and overall tax, it won't help you avoid the Medicare levy surcharge if you are liable to pay it. Hope this helps! 😊
Hi there! Thanks for your question. Yes, concessional contributions include your SGC. How much you can contribute depends on a number of factors. I recommend watching this video to learn more about the updated concessional cap ($30,000 in FY25) and carry forward super contribution rule. I believe you will find a comprehensive answer to your question.😊 ►8 Superannuation Changes from 1 July 2024 (Australia) th-cam.com/video/4StBjBLmx7g/w-d-xo.html&ab_channel=RuiShi
Yes. Check out this video for more details: What You Didn't Know About Australia's Tax-Free Threshold FY2024 th-cam.com/video/37F8QqmrReQ/w-d-xo.html&ab_channel=RuiShi
Thank you for your question! Contribution splitting itself is not tax deductible. However, the contributions being split can still benefit from concessional tax treatment.
I just check mygov ato to top up my super and can put in 10k from 5 years ago, then get taxed 15%, that money that's in my bank from salary has already been taxed around 30% so i can't see the point of topping up my super and getting it taxed again.
Thank you for your question. When you make a personal deductible super contribution, the money transferred from your bank (after-tax money) will be taxed at 15% inside your super. However, you can then claim this amount as a tax deduction and get more back in your tax return. If your marginal tax rate is 30%, this means that overall (personal + super), you save 15% tax on the amount you contribute. Hope this makes sense. Please check out the ATO page on personal deductible super contributions for more details. Also, don't forget to lodge a Notice of Intent to claim a tax deduction with your super and get an acknowledgement. Otherwise, the money transferred from your bank account to super is considered an after-tax contribution. 😊
Thank you so much for your informative videos. At 70 years old no tax agent ever gave me tax savings advice like this🙏
Thank you so much for your kind words! I'm glad to hear that the videos have been helpful to you. It's never too late to learn new strategies, and I'm happy to be able to provide this information. 🙏😊
A star is rising! Thank you for the informative content. Keep up the great work. I'm sure you are helping many others.....
Thank you so much for your kind words and encouragement! I'm glad you find the content informative. Your support means a lot. Thank you! 😊
Thanks for your extremely helpful dumbed down videos! Education in understanding Super is needed! But there is a lack of understanding when Retiring also. Maybe you can explain the tax payable in Death and taking advantage of re contribution - Tax minimising. Keep doing what you do! The oldies will come. 👏
Thank you for your kind words! I'm glad you find the videos helpful. I actually have a video in the pipeline about superannuation strategies for older Australians. It's a fascinating topic with lots of creative strategies. Stay tuned! 😊
thank you for making this video. I was not aware of at least two of the strategies and potential need to set up a side SMSF to minimise CGT. I feel much more empowered now to better manage for the future. very informative, well structured and clearly presented.
Thank you for your kind words! I'm glad to hear that you found the video informative and empowering. It's great to know that the strategies discussed were helpful for you. Stay tuned for more content! 😊
Excellent- I just figured out I have ,more than 50K unused consessional - Thank u so much,
That's great to hear! I'm glad the video helped you discover your unused concessional contributions. Thank you so much for your comment! 😊
Thank you for making this video clear and informative great job! Re strategy 6, the $157,500 contribution to superfund in the example, he would be paying 15% tax within Superfund, despite his personal tax is zero. Just to be clear :)
Thanks for your comment! You’re right-the $157,500 contribution to the super fund would be subject to a 15% tax within the super fund, even if his personal tax rate is zero. Glad the video was clear and informative for you! 😊
A great little summary! Plenty of info that I was aware of only vaguely or was new to me.
I like the way you do the examples: simple and clear, presented in a logical order as you speak. It makes them easy to follow and take in. Well done there!
Thank you so much for your kind words! I'm glad you found the summary helpful and that the examples were easy to follow. I aim to present information in a clear and logical way. Your feedback means a lot to me! 😊
Wow! Thanks a lot for sharing this relevant information on super, Rui
Keep up the great work! Well defined content and very well explained… so outstanding!
Thank you so much for your kind words! I'm thrilled you found the information on super helpful. I'll keep working hard to provide well-defined and clear content. Your support means a lot! 😊
More to do with self-funded retirees that do not rely on Government pension and having assets outside of super. More what softwares financial planners use. Thank you ❤
Thank you for the suggestion! I’ll keep this in mind for future videos, especially regarding self-funded retirees. 😊
Great video. I am looking at setting up a SMSF and this video is very helpful.
Thank you! I'm glad to hear that you found the video helpful. Setting up an SMSF can be a great move. If you have any other questions or need further information, feel free to ask. Stay tuned for more videos on this topic!😊
Very informative video, Rui, and very well presented. Maybe you could help with this question.
I am over 65 and still working, is it better to withdraw lump sums from the Accummulator or from the Pension Fund?
Thank you for your question! While I can't provide personalized financial advice, I can share some general information that might help. To fully answer your question, more details would be needed, such as your total super balance, the type of pension fund you have, and even your partner's circumstances if you have one.
Here are some important points to consider:
1. At age 65, a minimum of 5% of your pension balance (if it is an account based pension) must be paid out. Beyond that, you can choose between accumulation or pension.
2. Investment returns on money in a pension account post-age 65 are tax-free, whereas returns on money in an accumulation account are taxed at 15%. From a tax perspective, a pension is more effective, and some people keep their accumulation account balance as small as possible, just enough to keep the account open for contributions.
3. If you have a partner receiving age pension or other Centrelink benefits that are asset-tested, money in your accumulation account is not assessed when you are under 67. This might lead some to 'hide' money in the accumulation account by transferring their pension back to the accumulation account.
4. A cash-out and re-contribution strategy is worth considering for some people to minimize personal income tax at this age.
Which way to go is not black and white; it depends on personal circumstances. I will do a video on more superannuation strategies for pre-retirees and retirees soon. Stay tuned. Hope this helps! 😊
Rui! Love you work!!!
Jarryd! Thank you so much! Glad to hear you’re enjoying it. 😊
Can you pls do a post about sage withdrawal rate and review of any online calculators to model how much one can safely withdraw for those DIY retirees not using a financial planner. Great contents
Hi there, thank you for the suggestion! Financial modeling can indeed be complex, as it involves many factors such as health and life expectancy, inheritance plans, the interaction between assets and Centrelink benefits, and aged care considerations. Even financial planners' models have margins for error, making it challenging to prescribe a safe withdrawal rate.
I'm not aware of any free online calculator that can account for all these variables. However, you might find the ASFA calculator helpful for a general picture, though it shouldn't replace professional financial advice. www.superguru.com.au/calculators
I might do a video on various tools and calculators for DIY retirees. Stay tuned! 😊
Thank you for the very helpful video, Rui. I'm 65+, retired for years with SMSF in accumulation phase. Can CG from shares sold be used for personal concessional contribution like property CG in your example? What's the diff between Concessional Contribution and Voluntary Contribution?
Thanks so much for your question! Yes, capital gains from shares sold can be used for a personal concessional contribution, similar to property capital gains in my example. The key difference between concessional and voluntary contributions is that concessional contributions (like salary sacrifice and personal deductible contributions) are taxed at 15%, while voluntary contributions can be either concessional or non-concessional, with the latter not being taxed upon entering your super. Hope that helps!
Can you please do a Transition to retire scheme , thanks
Thank you for the suggestion! I'm currently planning a video on the Transition to Retirement scheme. Is there any specific aspect you’d like me to cover or any examples you’d find helpful? Stay tuned! 😊
Can we think about super spouse contributions to have 18% return per year? It is basically gives us $540 (18%) every year. If we invest $540 back in super that will compound massively. Because it is non-concessional so we pay no more tax.
Thanks for your comment! While the spouse contribution tax offset can be a nice boost, it's important to keep in mind that the 18% return is only on the amount you contribute for the offset, not your entire super balance. Reinvesting it can definitely help with compounding, but be sure to consider how this fits into your overall strategy. Always good to double-check with a financial adviser to make sure it's the best move for you!😀
Great content! Gutsy to put out financial content without being licensed like Queenie, Tash Invests etc. Best of luck!
Thank you! It's great to hear from someone who understands how tough it is to put out financial content in the current regulatory environment. Right now, I'm staying on the safe side by not providing much content on specific products. I am considering getting a general advice license down the track. If you know any good licensees for providing general advice licenses, please let me know. 😊
@@OZRuiShi I got legal advice and they said speaking about product classes (e.g. superannuation) counts as product advice so have delayed until find someone affordable. Best of luck!
@@AndrewBrown-ee9xg Yeah, the ASIC guidelines are indeed very strict. I'm creating content in the spirit of helping people and hope to stay on ASIC's good side. However, I agree that getting a general advice license sooner rather than later is a good idea. Best of luck with your plans as well!
Nice video and perfect timing. I have a question regarding strategy 4. Should I claim the tax deduction before adding money or after I added the full amount ?
Thanks for watching! You should do it after you add the full amount. 😊
beautiful, thanks 🙏
Thank you so much! 🙏😊
Thanks for the video. Great content. Is the SMSF reserve option also subject to the $500K limit?
Thank you for watching and for your kind words! The SMSF contribution reserving strategy is different from the carry-forward concessional contribution strategy, so it is not subject to the $500K limit. 😊
Thanks. Another question on this topic. Does the SMSF need to be established from FY18? Or can I establish one now and claim my carry forward from previous financial years?
@@roblee3395 You're welcome! For the carry-forward concessional contribution rule, you can establish an SMSF now and still use it, as long as your total super balance as of 30 June of the previous financial year is under $500k and you meet the eligibility criteria for making personal deductible super contributions (all good if you are between 18 to 67).
The five-year unused conscessional contribution cannot be used if your super balance exceeds $500K.
What if you own property in an SMSF? Let’s say your SMSF has a $800K house with $600K debt.
How does the tax office calculate the balance of your super?
Excellent question! I'd like to know the answer too!
Thanks for the question! The answer depends on when the loan (LRBA) was taken out. If the loan was before 1 July 2018, then the loan balance is NOT included in your total super balance. If it was entered on or after this date, the loan balance is NOT included unless you have attained age 65, are retired, or the lender is an associate. Check out this ATO page for more info; it has a useful flowchart to help determine your specific circumstances. Hope this helps! 😊www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/self-managed-super-funds-smsf/in-detail/smsf-resources/smsf-technical/limited-recourse-borrowing-arrangements-questions-and-answers/lrbas-and-total-superannuation-balance
Hi Rui, just wondering is the medicare levy surcharge calculated after deductions or before? Thanks
Hi there, thank you for your question!
The Medicare levy surcharge (MLS) is calculated based on a specific definition of income for MLS purposes. www.ato.gov.au/individuals-and-families/medicare-and-private-health-insurance/medicare-levy-surcharge/medicare-levy-surcharge-income-thresholds-and-rates#ato-IncomeforMedicarelevysurchargepurposes
It's important to note that certain deductions, such as salary sacrifice, personal deductible super contributions, and investment losses, are added back to the taxable income. So, while making a personal deductible super contribution can reduce your taxable income and overall tax, it won't help you avoid the Medicare levy surcharge if you are liable to pay it.
Hope this helps! 😊
Hi Rui, Is concessional contribution including SGC. Which means you can contribute only the balance of 27500 less SG from your employer ?thanks
Hi there! Thanks for your question. Yes, concessional contributions include your SGC. How much you can contribute depends on a number of factors. I recommend watching this video to learn more about the updated concessional cap ($30,000 in FY25) and carry forward super contribution rule. I believe you will find a comprehensive answer to your question.😊
►8 Superannuation Changes from 1 July 2024 (Australia)
th-cam.com/video/4StBjBLmx7g/w-d-xo.html&ab_channel=RuiShi
Thanks Rui for your reply ❤
Did you say the tax free threshold for FY24 was more than $18,200?
Yes. Check out this video for more details: What You Didn't Know About Australia's Tax-Free Threshold FY2024
th-cam.com/video/37F8QqmrReQ/w-d-xo.html&ab_channel=RuiShi
Is there tax deductible for contribution splitting?
Thank you for your question! Contribution splitting itself is not tax deductible. However, the contributions being split can still benefit from concessional tax treatment.
I just check mygov ato to top up my super and can put in 10k from 5 years ago, then get taxed 15%, that money that's in my bank from salary has already been taxed around 30% so i can't see the point of topping up my super and getting it taxed again.
Thank you for your question. When you make a personal deductible super contribution, the money transferred from your bank (after-tax money) will be taxed at 15% inside your super. However, you can then claim this amount as a tax deduction and get more back in your tax return. If your marginal tax rate is 30%, this means that overall (personal + super), you save 15% tax on the amount you contribute.
Hope this makes sense. Please check out the ATO page on personal deductible super contributions for more details. Also, don't forget to lodge a Notice of Intent to claim a tax deduction with your super and get an acknowledgement. Otherwise, the money transferred from your bank account to super is considered an after-tax contribution. 😊