Super Contributions to My SMSF - A TAX question for the GURUs

Keen Bargain Hunter on 04/02/2020 - 23:06

Seeking ADVICE only… no liability held

Weve recently set up our SMSF (Bare Trust and Deed), with my significant other to purchase an IP.
We still have our industry funds for our insurance purposes.

I want to potentiate the situation - If i contribute $150.00 per fortnight to our SMSF ( 4K), employer contributions are about 10K per year. I want to put 10K post tax dollars into make it just slightly less than 25K. Also, Im of the impression because I made extra contributions, the government will contribute $500.00

Could I claim a notice of intent to claim ATO (NAT 71121) from my SMSF, as well as part of the money went into the industry superfund?

Financial

Comments

  • MITM on 04/02/2020 - 23:30
    +1

    Pretty sure if you contribute over $1000 even if only paid in for insurance purposes, you do qualify for the 50%/$500 max. Govt contribution - use to be 100% in the golden days of entitlement)
    Whether the contributions grows (or diminishes) it was still a self after tax contribution.
    Yeah, but only 1 claim - no multiple dipping as it'll be max. $500 per tax return per annum.

  • Kenb0 on 05/02/2020 - 00:05
    +2

    Also the govt co-contribution of up to $500 per year is only for low or middle income earners, if you earn above the threshold, govt won't be co-contributing to your super fund.

  • [Deactivated] on 05/02/2020 - 02:54

    You need to earn $37,697 or less per year to be eligible for the $500 co-contribution, for a $1000 after tax donation. You can not submit a notice of intent to claim and get the co contribution for that money.

    On the other hand if you earn more you can claim a tax deduction (via notice of intent to claim) for any after tax contributions you make up to $25k combined limit between employer and personal contributions.

    The notice of intent to claim requires that the super fund then takes out the 15% of tax to pay the tax department. You really need to know what you're doing with an SMSF which is why they're almost universally a bad idea.

    For anyone else reading this, buying property though an SMSF is generally a bad idea.

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