Do you make contributions to grow your superannuation funds? Chances are that you will have noticed the increasing legislative limits placed on super contributions, restricting how much you can contribute annually. But it isn’t all bad news. With the assistance of superannuation experts, you could be enjoying a more fruitful self-managed superannuation fund (SMSF) than you thought.
- Concessional contributions are: $25,000 per annum.
- Non-concessional contributions are: $100,000 per annum (or $300,000 for 3 years).
- Pension balance limit is $1.6M.
- Investment and withdrawal restrictions.
Do these headline limits really mean superannuation is of limited use and now near impossible to substantially leverage and grow? And given the investment and withdrawal restrictions, is it really worth it?
It’s definitely still possible, and indeed desirable, to substantially leverage and grow a SMSF. The secret to success? Having expert knowledge in the full garnet of superannuation laws, not simply the headline limits and knowing how to successfully employ them commercially.
In recent times, Toohey Reid has successfully applied to the Australian Taxation office for multiple binding rulings supporting our clients in contributing more than $500,000 each year from their business operations to their SMSF.
And why wouldn’t you when these are just a handful of the benefits you can enjoy?
- Tax rates of between 0 and 15% (yes ZERO, no need to relocate to a tax haven) rather than up to 49% outside of superannuation.
- Assets within a superannuation fund that are generally protected from creditors.
- Surprisingly few actual investment restrictions that will keep 95% of people happy (of course, with balance across your whole investment portfolio).
- Withdrawal restrictions easily managed across most people’s whole investment portfolio (including non-superannuation).
So if your superannuation balance is on the skinny side of things, you’ve been missing out on the financial feast! Furthermore, if an expert is telling you that you cannot or should not grow your superannuation balance, then we would suggest that they are definitely not experts in superannuation!
Get the most out of your super
Interested in making the absolute most of your contributions? Toohey Reid can assist you in strategising and executing your SMSF plan so that you can get more out of your retirement. Our specialists know all the legal obligations involved with SMSF’s too, so you can always rest assured that our processes meet compliance.
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