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Tag: smsf tax return

Contribution Strategies For Self Managed Super Funds

A few years ago we moved from a situation where we had a virtually unlimited amount of money to deposit into your SMSF, but with potential tax issues on the final benefit, to a system where no tax was levied on the final benefit came with significant limitations. about how much you can bring into a super fund that you manage yourself.

As a result, much of the strategic focus has shifted to getting more cash into your SMSF to take advantage of that SMSF tax return and maximize your contribution limit. Therefore, the purpose of this article is to provide an overview of some of the main strategies available, assuming you still meet the criteria to participate in SMSF.

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– Pay the sacrifice

Salary is when you agree with your employer to waive a portion of your pre-tax paycheck in exchange for money deposited directly into your SMSF.

The effect of this strategy is that the amount you "sacrificed" is taxed a maximum of 15% instead of your marginal tax rate if the money is taken as salary (up to 46.5%). Note that this will only work if your marginal tax rate is above 15%.

– Self-deductible contributions

If you are unemployed or self-employed, you can make a taxable contribution. The benefits are pretty much the same as wage earners – lower taxes you now have to pay on your income if your marginal tax rate is above 15%.

SMSF Borrowing To Buy Property

Your self-administered super fund or SMSF pays down payments, upfront costs, and property operating expenses so you don't pay anything out of pocket.  can usually borrow up to 80 percent for residential property and up to 70 percent for commercial property – different rules apply to everyone.

You cannot live on the property, but in certain cases, you can rent a property and make payments directly to your SMSF. Why would you want to use super: your retirement ticket? Straight.

If you are one of the many smart Australians who know real estate is stable, you will be interested that it costs a lot less and it is much cheaper to buy property in a self-managed super fund. Wouldn't you rather pay a 15% tax than up to 46.5% by using SMSF tax return services in Australia?


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The property itself is paid for via your SMSF as it generates income through rent and inflation and is ultimately turned into positive cash flow. Meanwhile, your property will grow and you will continue to make money until (and if) you decide to sell it.

Using an SMSF loan to buy property is a smarter decision. Before retirement, capital gains and rent made by your SMSF on your property are subject to a tax of only 15% and reduced to 10% if the property is owned for more than 12 months.

Better yet, if you sell your property after you retire or keep it after you retire, you won't pay any capital gains tax at all.