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Hello Chris. Great video. Very helpful. Could I ask you a question? I put 110K of non concessional into super plus 30K concessional into my super last year. I then put in my request to claim 27.5K as a deduction and I haven't done my tax return yet. Now my MyGov account tells me I have triggered my bring forward arrangement and can only contribute 192.5K this year (330-110-27.5) as non concessional contributions. I am approaching retirement so I was planning to put in 360K this year. Will this MyGov account correct itself after I put in my tax return?
@@gvaindougson2067 Not sure what you mean? As I rapidly approach retirement I'm just putting as much into super as I can. Not really a strategy, just common sense I think, but I suppose you could call it that. I saw it on another video, which recommended getting as much into super as you can. It gave the example of two people, each with around 1 million to retire with, however one person had it nearly all in super whilst the other did not. The person with it in super paid basically zero tax whilst the other paid a significant tax bill. So yes, get a large portion of your savings into super before you retire. Remember you can only do this at a certain pace, usually limited to $30K plus $120K per year. Remember the bring forward rule that allows you to put $360K in at one time but then not contribute non-concessional for another 2 years. So get as much in as you can. My question really related to my Mygov account thinking that my concessional payments were non-concessional therefore telling me that I was already using the bring forward rule. I didn't want to contribute any more non-concessional payments until this was sorted out as if I am wrong they will tax me a very large amount.
Love your videos. I have a question for you if you don't mind. I am not retired, but I have a self managed super fund company, which invests in a number of USA ETF's some of which pay dividends. I know that dividends from Australian shares are tax free once I'm in pension mode, but I'm wondering what taxation treatment would be applied to dividends from an American ETF ? I understand that the the US Govt takes a 15% withholding tax presently, which is taken into account in Australia by way of reciprocal legislation. How does this work in retirement when dividend income would otherwise be tax exempt? PS - keep up the good work.
Hi Chris, the non concessional contributions also have the added advantage of the free government co contribution. (if eligible) My wife and I always try and add at least an additional $1k to get the free $500 now that we work casually and are under the upper threshold for GCC. Great stuff here Chris !
Great video Chris. The Spouse cont is a no brainer for us. My wife works casually and my higher income means I need all the deductions I can get, so we've been using that strategy for the past few years. $540 back in tax guaranteed
Hi Chris Thank you very much for your helpful information. If i transfer my superannuation funds from accumulated account to retirement account, can I add more money into the retirement account later? And how can I withdraw the remaining money in the accumulated account? Many thanks.
Yes, you can refresh a pension account after it has started to pick up additional accumulation balances. To withdraw money from an accumulation account into your personal bank account, you need to have met the relevant conditions to access your super and then contact your super fund regarding the process.
I suggest taking that appointment. Our tax, social security systems are hideously complex. Your advisor may provide you with options that you hadn't considered.
Your re-contribution is a Non-concessional contribution (to convert any taxable component to tax-free), so as long as you stay within the annual cap there is no 15% contribution tax.
How do Transfer Balance Caps interact with the Re-contribution Strategy? If you withdraw from pension-phase and re-contribute to accumulation, aren't you shooting yourself in the foot to some extent?
When you withdraw from pension, that amount will be deducted back from your total transfer balance. So TBC is unchanged after the re-contribution is done.
I'm on an account based pension now. I own my house + an investment unit. I got my first payment of 4% then turned 1/2 back into super straight away. Don't sweat about money if you have a good manager. We have more than we will ever need to live on. Our super is higher than 1 year ago after the deductions. It's stupidity great don't freak out just do it and live headache free.
So, if you already have a house and an investment unit, just live headache free. Got it, thanks for the tip. Helpful advice for the millions of Australians who can't afford a house or even a unit these days.
@@w0mblemaniaYeah, im priced out of owning ANY property. Now its just rich boomers and rich foreigners selling Australian housing to other rich boomers and rich foreigners
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Hey everyone, thanks for watching! Ready to take control of your retirement? Download our FREE 6-Step Superannuation Check today: www.torowealth.com.au/6-step-super-check/
Hello Chris. Great video. Very helpful. Could I ask you a question? I put 110K of non concessional into super plus 30K concessional into my super last year. I then put in my request to claim 27.5K as a deduction and I haven't done my tax return yet. Now my MyGov account tells me I have triggered my bring forward arrangement and can only contribute 192.5K this year (330-110-27.5) as non concessional contributions. I am approaching retirement so I was planning to put in 360K this year. Will this MyGov account correct itself after I put in my tax return?
How did this work out for you, as i was planning exactly the same strategy this year
@@gvaindougson2067 Not sure what you mean? As I rapidly approach retirement I'm just putting as much into super as I can. Not really a strategy, just common sense I think, but I suppose you could call it that. I saw it on another video, which recommended getting as much into super as you can. It gave the example of two people, each with around 1 million to retire with, however one person had it nearly all in super whilst the other did not. The person with it in super paid basically zero tax whilst the other paid a significant tax bill. So yes, get a large portion of your savings into super before you retire. Remember you can only do this at a certain pace, usually limited to $30K plus $120K per year. Remember the bring forward rule that allows you to put $360K in at one time but then not contribute non-concessional for another 2 years. So get as much in as you can.
My question really related to my Mygov account thinking that my concessional payments were non-concessional therefore telling me that I was already using the bring forward rule. I didn't want to contribute any more non-concessional payments until this was sorted out as if I am wrong they will tax me a very large amount.
Hi,
Can you do a break down on Defined benefit super?
Love your videos. I have a question for you if you don't mind. I am not retired, but I have a self managed super fund company, which invests in a number of USA ETF's some of which pay dividends. I know that dividends from Australian shares are tax free once I'm in pension mode, but I'm wondering what taxation treatment would be applied to dividends from an American ETF ? I understand that the the US Govt takes a 15% withholding tax presently, which is taken into account in Australia by way of reciprocal legislation. How does this work in retirement when dividend income would otherwise be tax exempt? PS - keep up the good work.
Hi Chris, the non concessional contributions also have the added advantage of the free government co contribution. (if eligible)
My wife and I always try and add at least an additional $1k to get the free $500 now that we work casually and are under the upper threshold for GCC. Great stuff here Chris !
That's true! More people should aim to achieve this. It's a guaranteed 50% effective return! Nice work.
Great video Chris. The Spouse cont is a no brainer for us. My wife works casually and my higher income means I need all the deductions I can get, so we've been using that strategy for the past few years. $540 back in tax guaranteed
We didn't find it so easy.
Because the receiving spouse is self employed, the ATO didn't give us the $540.
It's a pretty crazy, annoying system.
Excellent blog
Glad you liked it
What amount of super would you need to affect the age pension?
Hi Chris
Thank you very much for your helpful information.
If i transfer my superannuation funds from accumulated account to retirement account, can I add more money into the retirement account later?
And how can I withdraw the remaining money in the accumulated account?
Many thanks.
Yes, you can refresh a pension account after it has started to pick up additional accumulation balances. To withdraw money from an accumulation account into your personal bank account, you need to have met the relevant conditions to access your super and then contact your super fund regarding the process.
Lots of really helpful information thank you!
You're welcome!
I am going to start a TTR soon but can't do much more of any of the other strategies because I am over TBC.
Can I use the bring forward rule and the downsizing rule in the same year?
Yes, you can.
I have made an appointment with a financial advisor, not sure if I need it now after watching this😊
I suggest taking that appointment.
Our tax, social security systems are hideously complex.
Your advisor may provide you with options that you hadn't considered.
Great video. Thanks. Utilising the Recontribution strategy, is the contribution back into an Accumulation account taxed at 15%?
Your re-contribution is a Non-concessional contribution (to convert any taxable component to tax-free), so as long as you stay within the annual cap there is no 15% contribution tax.
How do Transfer Balance Caps interact with the Re-contribution Strategy? If you withdraw from pension-phase and re-contribute to accumulation, aren't you shooting yourself in the foot to some extent?
When you withdraw from pension, that amount will be deducted back from your total transfer balance. So TBC is unchanged after the re-contribution is done.
You might consider rolling back to accumulation to get the TBC credit before making the withdrawal.
I'm on an account based pension now. I own my house + an investment unit. I got my first payment of 4% then turned 1/2 back into super straight away. Don't sweat about money if you have a good manager. We have more than we will ever need to live on. Our super is higher than 1 year ago after the deductions. It's stupidity great don't freak out just do it and live headache free.
So, if you already have a house and an investment unit, just live headache free.
Got it, thanks for the tip.
Helpful advice for the millions of Australians who can't afford a house or even a unit these days.
@@w0mblemaniaYeah, im priced out of owning ANY property. Now its just rich boomers and rich foreigners selling Australian housing to other rich boomers and rich foreigners
Do you pay the 15% tax on the 300k downsizer contribution.?
no
No, it would enter and exit superannuation tax free.