Stunned that the recontribution loophole hasn't been shut down but I expect that by the time I'm eligible to exercise this strategy, that it'll be closed 😢 I'm currently 49 & retired.
It depends on how much of your super is taxable and non taxable. Check with your Superannuation Fund. Eg If you have a $600k super, only $250k may be in the taxable area and therefore inside the TBC (360k - 120k x 3 years brought forward) and doable.
@@dadoftwinsauBut you can't withdraw only your taxable component. Any withdrawal will be split proportionally between your taxable and non taxed components
@3.16 "Recontribution strategy can reduce OR EVEN ELIMINATE the 'Death Tax'". Given that any amount withdrawn for recontribution will always be proportionally split between tax free and taxable components of a fund how can the taxable component ever be fully eliminated? Reduced significantly, yes, but elimination is a mathematical impossibility, surely!
@dadoftwinsau Most accountants and tax agents don't even know super is taxed at 15% on growth. Even calling up the superfund, they had to get one of their specialists to tell me it's true and is not shown on any statements. Then there are the bonuses when in pension mode which they're suppose to remove the 15% on growth, but don't do it, but give you a so called bonus of 5% instead of the full 15%. Soooo scammy for super funds to do that.
Excellent advice! Thank you
Stunned that the recontribution loophole hasn't been shut down but I expect that by the time I'm eligible to exercise this strategy, that it'll be closed 😢
I'm currently 49 & retired.
but if the super balance is greater than TBC, then cannot do the large non-concessional lump sum
It depends on how much of your super is taxable and non taxable. Check with your Superannuation Fund.
Eg If you have a $600k super, only $250k may be in the taxable area and therefore inside the TBC (360k - 120k x 3 years brought forward) and doable.
@@dadoftwinsauBut you can't withdraw only your taxable component. Any withdrawal will be split proportionally between your taxable and non taxed components
@3.16 "Recontribution strategy can reduce OR EVEN ELIMINATE the 'Death Tax'". Given that any amount withdrawn for recontribution will always be proportionally split between tax free and taxable components of a fund how can the taxable component ever be fully eliminated? Reduced significantly, yes, but elimination is a mathematical impossibility, surely!
Works if your TSB is
Simple
Get rid of the stupid Victorian government
Instal a federal administrator and relegate Victoria to territory status
And what does that have to do with super
Move to China. No death tax or gift tax.
australia is china
i still think taxing super is wrong.. you already paid tax on the income you earnt it with. the gov only does one job well it seems.. tax
Sooooooooo complicated ... Too many gotchas
Not really. It’s just a matter of knowing when and how to do it. Your tax agent / accountant can help you do it easily. 🙂
@dadoftwinsau Most accountants and tax agents don't even know super is taxed at 15% on growth. Even calling up the superfund, they had to get one of their specialists to tell me it's true and is not shown on any statements. Then there are the bonuses when in pension mode which they're suppose to remove the 15% on growth, but don't do it, but give you a so called bonus of 5% instead of the full 15%. Soooo scammy for super funds to do that.
And it didn't even mention cap on concessional contributions and bring forward rules
@@paulchilvers5032 15% tax on growth in accumulation mode. They're suppose to remove the 15% growth tax in pension mode but they don't. It's a scam.