You currently, or plan to, draw a Pension from your superannuation fund.
If youre considering taking advantage of the super splitting strategy I suggest you get some tax advice, and potentially retirement planning advice, to ensure you fully understand the financial implications of such a strategy.
The tax offset can be used to reduce your taxable income.
Write the total taxed elements at Q and the total untaxed elements.The annual cap will linked to the indexation of the concessional contributions caps. .Note: If readers are seeking information about what happens to super benefits when a relationship breaks down, see.As is currently the case, individuals aged between 65 and 74 will be eligible to make annual non-concessional contributions of 100,000 if they meet the work test (working more than 40 hours within a 30 day period each income year) but are not able.For information on preservation age, see SuperGuide article, Accessing super: Preservation age moves to 57 years.Tax alert: The federal government has introduced an additional tax of 15 on the concessional super contributions of high-income earners (those with adjusted taxable income of more than 250,000).You and your spouse are both Australian residents and citizens.The new annual cap with the eligibility threshold replaces the existing 180,000 per year cap.Individuals who have multiple superannuation funds will need to carefully consider the total balance of all funds.We intend to pay off our mortgage before putting more into our superannuation.Every effort has been made to ensure that it is accurate; however, it is not intended to be a complete description of the matters described. To access the publication please click here.Q: I am 42 years old and my partner is 57 years old.Can I transfer part of my superannuation to his fund now, as I have much longer working life ahead of me, so that he can at least be getting the benefit of compounding?Note that the concessional cap includes any employer contributions (Superannuation Guarantee) made on a persons behalf.For the 2016/2017 year ( to if a person was aged 48 years or under on, he or she could make up to 30,000 in concessional (before-tax) contributions for the 2016/2017 year.You shouldnt have claimed contributions as a tax deduction.
While these reforms will have an impact on most superannuation members you are likely to be significantly affected if: You are an smsf trustee, aaa discount code for budget you plan to make large contributions into super over the next few years.
For more information on the extra contributions tax for high-income earners, see SuperGuide article Double contributions tax for more high-income earners.