Information You won’t get from Unlicensed Accountants #7
Along with this raft of legislative change, the Australian Securities and Investments Commission (ASIC) has also introduced new licensing requirements for accountants who work with and advise Self Managed Superannuation Fund (SMSF) Trustees. Only approx. 10% of accountants have complied with these changes to date.
As such if you, as many, consider your accountant would be your 1st port of call for Financial Advice, they will likely advise you, they are unable to provide the information you require & should consult a qualified Financial Adviser / Planner.
This is general advice only and you should seek expert financial advice from a qualified financial adviser before acting on any of the information covered in these topics.
Don’t forget to use your unused concessional (salary sacrifice) contribution cap carry forward where appropriate.
From 1 July 2018, if you had a total super balance of less than $500,000 (as at the previous 30 June) and you made or received concessional contributions of less than the allowable annual cap of $25,000, you may be able to accrue unused amounts for use in subsequent financial years.
2018/19 is the first financial year you can carry forward unused cap amounts and these amounts can be used from 1 July 2019. Unused cap amounts can be carried forward for up to five years.
What are the benefits?
Greater flexibility to make concessional contributions which may be helpful if you have broken work patterns or can’t afford to contribute in a particular year.
If your salary increased, moving you into a higher tax bracket, making a larger concessional contribution may be more tax effective than in previous years.
If you are selling assets that will generate a capital gains tax liability, unused accrued concessional contributions may allow you to reduce of the tax payable although some planning is required here and it is important to be aware of additional tax that may apply to concessional contributions (section 293).
As Orrin Woodward said “You can have a masters degree in making money, but you will still end up broke if you have a PhD in in spending it.”