Superannuation And Taxation: A Practical Guide To Saving Money On Your Super or SMSF

Table of Contents

Chapter 1: The superannuation scheme: removing the mystique

How you’re taxed in Australia

Coming to terms with self-assessment

Four types of super funds

Reading the fine print: what you need to do

Taking that first step: making a contribution

At a glance: the tax benefits you can gain

At a glance: limitations of putting money into super

The two phases of superannuation

The accumulation phase

The pension phase

Superannuation Complaints Tribunal

Getting professional help

Professional service providers

Useful references

Australian Taxation Office publications

Other taxation rulings

Chapter 2: Long-term commitment: how much you need to accumulate

It’s not your money until you retire

How much should you put into super each year?

Young adults and superannuation

At a glance: super and low-income earners

Maturing nicely

Approaching retirement age

Let the good times roll: income in retirement

And it’s all tax free!

Useful references

Australian Taxation Office publications

Chapter 3: Setting up a self managed super fund: the good, the bad and the ugly

Do-it-yourself super funds

At a glance: benefits of running your own fund

At a glance: what you can’t do in an SMSF

Getting started: the steps you need to complete

Trust deed

Election to be regulated

Tax file number (TFN)

Australian business number (ABN)

Trustee declarations

Investment strategy document

Bank account

Membership application form

GST registration

Binding death benefit nomination forms

Estate planning

Insurance cover

Record keeping

Transfer forms

Administration

Useful references

Australian Taxation Office publications

Chapter 4: Running a self managed super fund: the rules you have to follow

At a glance: common mistakes with SMSFs

Approved auditor

At a glance: what your auditor is checking

Sole purpose test

Loans and financial assistance to members

Acquiring assets from related parties

Business real property

Listed securities

In-house assets

At a glance: what defines an in-house asset

Borrowings

Limited recourse borrowing

Separation of assets

Keep proper records

Investment strategy

Documentary evidence and valuations

Useful references

Australian Taxation Office publications

Australian Taxation Office interpretative decisions

Other taxation rulings

Chapter 5: Building the nest egg: making a super contribution

Making a contribution

Concessional contributions

At a glance: what are concessional contributions?

At a glance: who is not eligible for an employer super guarantee contribution

Personal pre-tax contributions (non-concessional contributions)

Federal government concessions

Superannuation co-contribution scheme

At a glance: super co-contribution eligibility test

Spouse contribution tax offset

At a glance: spouse contribution tax offset eligibility test

Self-employed contributions

Substantially self-employed

Employee or contractor?

Rollovers from other complying superannuation funds

Partnerships and superannuation

Useful references

Australian Taxation Office publications

Australian Taxation Office interpretative decisions

Other taxation rulings

Chapter 6: Sharing your wealth: taxing your accumulated benefits

How the Australian tax system works

At a glance: how complying super funds are taxed

Contributions and taxation

Concessional contributions

Non-concessional contributions

The accumulation phase

Assessable contributions

Investment income

Dividend franking credits and the 45-day rule

Capital gains

Allowable deductions

Self managed super funds tax return

The pension phase

Useful references

Australian Taxation Office publications

Australian Taxation Office interpretative decisions

Chapter 7: Building wealth: accumulating retirement benefits

Investment strategy

At a glance: eligible investment assets

At a glance: what your SMSF can’t do

General investment principles

Shares

At a glance: benefits of investing in shares

At a glance: limitations of investing in shares

Fixed interest securities

At a glance: benefits of investing in fixed interest securities

At a glance: limitations of investing in fixed interest securities

Real estate

At a glance: benefits of investing in real estate

At a glance: limitations of investing in real estate

Managed funds

At a glance: benefits of investing in managed funds

At a glance: limitations of investing in managed funds

Collectables

At a glance: benefits of investing in collectables

At a glance: limitations of investing in collectables

Useful references

Australian Taxation Office interpretative decisions

Other taxation rulings

Chapter 8: Accessing your super fund benefits: enjoying the spoils

Conditions of release

Preservation age

At a glance: conditions of release

Severe financial hardship

Temporary resident

Pensions

At a glance: SMSFs and starting a pension

Taxation

Receiving a superannuation pension

Buying a superannuation pension

Lump sum withdrawals

Under preservation age

Preservation age to 59 years of age

Over 60 years of age

Receiving a super pension from an SMSF

Making a contribution

Investment strategy

Useful references

Australian Taxation Office publications

Other taxation rulings

Chapter 9: Death and taxes: superannuation death benefits

Dependants and non-dependants

Binding death benefit nomination

Superannuation death benefit pensions

At a glance: how superannuation death benefit pensions are taxed

Superannuation lump sum death benefits

At a glance: how superannuation lump sum death benefits are taxed

Update your legal documents

Useful references

Australian Taxation Office publications

Appendix A: Key tax and superannuation rates

Superannuation contributions

Pensions

Lump sum superannuation payments

Appendix B: Key tax cases relating to superannuation