If you have reached the eligible age, you may be able to contribute up to $300,000 from the proceeds of the sale (or part sale) of your home into your superannuation fund. The eligible age is as follows: From 1 January 2023, 55 years old or older. From 1 July 2022, 60 years old or older.
Making personal concessional (deductible) contributions to superannuation can effectively reduce capital gains tax within your individual name, because you receive a personal tax deduction for making personal concessional contributions to super, which reduces your assessable income and can also reduce your marginal tax ...
You can place more of the proceeds of the sale into super by making non-concessional (after tax) contributions. Although this won't immediately reduce your tax, it will place the funds in a very tax-friendly environment and help to build funds for retirement.
From 1 July 2022, the non-concessional contributions cap is $110,000. Members under 75 years of age may be able to make non-concessional contributions of up to 3 times the annual non-concessional contributions cap in a single year.
You can contribute a total of up to $27,500 (concessional contributions cap) before tax each financial year from 1 July 2021. Before-tax contributions are generally taxed at 15%, unless you: earn more than $250,000 p.a.*
If you have reached the eligible age, you may be able to contribute up to $300,000 from the proceeds of the sale (or part sale) of your home into your superannuation fund. The eligible age is as follows: From 1 January 2023, 55 years old or older. From 1 July 2022, 60 years old or older.
You will also receive an amount of earnings that relate to those contributions. The $30,000 limit on eligible contributions applies to requests for FHSS determinations made before 1 July 2022. The $50,000 limit on eligible contributions will only apply to requests for FHSS determinations made from 1 July 2022.
It's worth checking to make sure you're being paid the right amount. If you can afford it, making extra contributions is a great way to boost your retirement savings. And it can reduce your tax.
There are limits to the amount of super you can contribute each year, exceeding the limit may mean paying extra tax.
From 1 July 2021 the maximum you are allowed to make in non-concessional contributions to your super is capped at $110,000 a year.
Only certain properties can be transferred to your super fund. Usually, only a property that is wholly and exclusively used in one or more businesses is able to be transferred to your own SMSF.
You cannot transfer residential property. There is a blanket ban on SMSFs accepting, or purchasing, residential property from members or associates including family members. Just don't do it.
The over-55 home sale exemption was a tax law that provided homeowners over age 55 with a one-time capital gains exclusion. Individuals who met the requirements could exclude up to $125,000 of capital gains on the sale of their personal residences. The over-55 home sale exemption has not been in effect since 1997.
How Much Can I Put into Super in a Lump Sum 2023? You can put a lump sum of at least $110,000 into superannuation, which is the general non-concessional contribution cap. However, you can often put in much more using the concessional contribution cap, bring-forward rule and carry-forward rule.
“Investing in super is for the long term and assuming you invest in a balanced/growth portfolio, the return should exceed the long-term interest rate of a home loan. This coupled with taxation advantages makes super a great way to hold and build wealth,” Haddan says.
Pre-planning helps
ASFA estimates people who want a comfortable retirement need $640,000 for a couple, and $545,000 for a single person when they leave work, assuming they also receive a partial age pension from the federal government. For people who are happy to have a modest lifestyle, this figure is $70,000.
Key points. Keeping money in a high-growth super fund would have offered a better return than investing in property over the past 10 years. Property returns were more likely to be competitive with super in expensive neighbourhoods.
You can contribute up to $27,500 each year. These are contributions you have not paid any personal income tax on. They are called 'concessional contributions' because the concessional rate of tax paid on super is 15%. This is less than the lowest income tax rate of 19% (if you earn more than $18,200 per year).
To be eligible for the higher amount, says Miller, your total superannuation balance calculated on the preceding June 30 needs to be lower than $1.48 million. So assuming your June 30, 2021 balance was $1 million, says Miller, you would appear to be eligible to contribute $330,000.
If you transfer more than $1.7 million, you'll generally be liable to pay 15% tax (or up to 30% tax if you've gone over before) from the day you go over the transfer balance pension cap. You'll have to take the excess money out of your pension account; your options for doing this depend on the type of account you have.
Australia's six year absence rule allows you to turn your primary place of residence (PPOR) into an investment property and collect rent and claim depreciation for up to six years provided you've stopped living there. When it comes time to sell you won't be liable for capital gains tax or CGT for those six years.
Small business 15-year exemption
You won't have an assessable capital gain when you sell a business asset if: your business has owned the asset for at least 15 continuous years. you're aged 55 years or over. you're retiring or permanently incapacitated.