Financial Tools
  Client Portfolio Access
  New Client Kit
  Enquiry / Seminar Registration
Hot Issues
Market Update – April 2015
An investor's personal trainer
Budget 2015 - some professional opinions
Australian Government - Budget 2015
What does the ATO want from you?
Making sense of the new excess contribution rules
Greying, working and contributing
Simple-yet-smart investment housekeeping
Market Update – March 2015
Customer-centred innovation underpins high satisfaction among financial advice customers
Two sides to the age profile of SMSF members
Actuaries call for end to superannuation policy tinkering
ATO urges caution on pensions
Market Update - February 2015
Aussie economy shifts gears as structural changes take hold
The catch 22 of retirement savings
Are there reasons to help the tax man do his job?
Some financial terms explained
Small business paradox
Good financial planning finally has a value: 23% more income in retirement
Market Update - January 2015
Articles archive
Quarter 1 January - March 2015
Quarter 4 October - December 2014
Quarter 3 July - September 2014
Quarter 2 April - June 2014
Quarter 1 January - March 2014
Quarter 4 October - December 2013
Quarter 3 July - September 2013
Quarter 2 April - June 2013
Quarter 1 January - March 2013
Quarter 4 October - December 2012
Quarter 3 July - September 2012
Quarter 2 April - June 2012
Quarter 1 January - March 2012
Quarter 4 October - December 2011
Quarter 3 July - September 2011
Quarter 2 April - June 2011
Quarter 1 January - March 2011
Quarter 4 October - December 2010
Quarter 3 July - September 2010
Quarter 2 April - June 2010
Quarter 1 January - March 2010
Quarter 4 October - December 2009
Quarter 3 July - September 2009
Quarter 2 April - June 2009
Quarter 1 January - March 2009
Quarter 4 October - December 2008
Quarter 3 July - September 2008
Quarter 2 April - June 2008
Quarter 1 January - March 2008
Quarter 4 October - December 2007
Quarter 3 July - September 2007
Quarter 2 April - June 2007
Quarter 1 January - March 2007
Quarter 4 October - December 2006
Quarter 3 July - September 2006
Quarter 2 April - June 2006
Quarter 3 of 2009
Dumb, dumber, dumbest
Business confidence hits six year high
Matching investment risk tolerance to personality
Retirement incomes loom as super’s big challenge
Market and Economic update - August 31 2009
Powerful Budgeting and Super Tools available on our site.
Something remarkable with SMSFs
A determined tram driver
Price of crude jumps to 2009 high
Super Fund Members may be Entitled to more Age Pension
Transfer files securely using our website.
Hard at work - after all this time
Top 200 firms face $2.8b carbon bill
Re-contribution after turning 60
Stinging message for SMSFs
RBA chief hints rates could rise soon
1st July 2009 Start Dates
Investments Market Data - 30th June 2009
Re-contribution after turning 60
This is an extract from Max Newnham's book "Self Managed Super Funds - A Survival Guide".

One of the fundamental changes made to superannuation under the new system was to cut down the many components of superannuation down to two. Those being taxable concessional benefits and tax exempt non-concessional benefits. This recontribution strategy aims to increase the non-concessional percentage benefits to provide a tax benefit upon the death of the member.

Taxable super benefits paid to a non-dependant are taxed at 15 per cent, tax exempt benefits are tax free. Under this strategy a super fund member takes a lump sum tax free payment after they have turned 60. This lump sum is then recontributed to the super fund as a non-concessional contribution. An account based pension is then commenced that locks in the tax exempt percentage of the member's benefits.

Upon the death of the member any residual superannuation benefits passing to non-dependants are received by them tax free. The limit on how much a person can make a year in non-concessional contributions restricts the amount that can be withdrawn and recontributed. In addition some experts have raised the specter of the ATO attacking this strategy under part IVA of the tax act.

I personally am less worried about the ATO being successful in using part IVA to attack this strategy for people over 60 than I was if it is used for people under 60. For part IVA to apply a taxpayer must have entered into a scheme or arrangement where the primary motivation was to gain a tax benefit. In this case the person taking the lump sum then recontributing it does not receive the benefit themselves, their heirs do.




  Financial Advisor | Financial Planner | Financial Adviser | Financial Planning | Financial Planner Sydney