Superannuation Discussion + market volatility

Quickstatus said:
That's my understanding You can't specify which funds to take out.

If % of concessional in accumulation is 70% then when you withdraw, 70% will be concessional and 30% will be non concessional.
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Thanks. So it's based on the current percentage of each super and not a given ATO formula. I knew we couldn't specify from where.
Jacques Vert said:
Perhaps it's time to sit down with a qualified and independent advisor?
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Yes of course. But I like to know exactly what to ask first. 😉. Saves a lot of to and fro. We have a business accountant who is currently doing our financials.
 
Pushka said:
So I have five years then. I can make two rounds of $300K so $600000. And I'll need to set up another pension fund to put the funds back in. Some can stay in the accumulation account which we both kept as well as still working.

But thinking again, when the funds are withdrawn they aren't all taken from the taxed part, are they..

So, if I turn 75 at the end of the second round (June) it's still ok to do it that year? Although if I get my act together I can do it the year before.
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How much is correctly pointed out below.

stm1sydney said:
$360k now (or $120k p.a.).
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It will continue to index, but not change until the Government specify it. They want to keep the numbers nice and round.

Yes, people who wish to do the withdrawal and re-contribution strategy need to calculate how many times they can do it before they lose access (age 75 as pointed out). The FY year in which a person turns 75 is the last time it can be done (although there is still one strategy for contributing to super beyond age 75 - downsizing). So there are opportunities for some, if the dates align, to do a yearly W&R (max $120K), then on/after July 1 in the next FY do the maximum W&R (currently $360K) and then do it again in 3 years time.

The amounts withdrawn are done in proportion of the concessional and non-concessional mix in the current fund. People need to calculate whether it's best to recontribute to the initial fund, or set up a new super fund for the W&R amount (where the recontributed money, assuming you don't claim a tax deduction, wil be non-concessional and free of tax to the person, their spouse or any eventual beneficiaries). Then the person can either withdraw the funds (assuming a condition of release is/has been met) and gives to children/grandchildren [asssuming they have capital needs to be fulfilled] or move the funds to pension (will be dependent on things like maximum caps, need for the funds and assessing the benefit of having tax free earnings in the pension mode, rather than taxable earning [at maximum of 15%] in the super fund). Those that want to achieve tax free earnings on the capital invested, but don't need the income, can always contribute the pension payments back into supernnuation (if allowed, dependent on how much of the contribution caps they have used), or use the tax free income to benefit their children or grandchildren (and you get to see what they do with the funds, rather than being dead and not knowing).
 
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I think a better strategy would be to leave the bring forward provision until your last year of contributing. Effectively allows you 7 years of contributions.
 
QF WP said:
The amounts withdrawn are done in proportion of the concessional and non-concessional mix in the current fund. People need to calculate whether it's best to recontribute to the initial fund, or set up a new super fund for the W&R amount (where the recontributed money, assuming you don't claim a tax deduction, wil be non-concessional and free of tax to the person, their spouse or any eventual beneficiaries).
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Given recontributing to your initial fund will always reduce the concessional percentage for next withdrawal, wouldn’t you always be better off putting into a new fund (not impacting this percentage)? You could always recombine later.
 
burmans said:
Given recontributing to your initial fund will always reduce the concessional percentage for next withdrawal, wouldn’t you always be better off putting into a new fund (not impacting this percentage)? You could always recombine later.
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Depends on the persons requirements. Usually, I would expect people are setting up a new account and taking their required level of income from it (together with income from any current accounts). Often people I know are taking the minimum pension amount from the second fund (to retain as much in the 100% "tax free to everyone" environment for as long as possible) and then taking the balance of their annual income needs from the original account [if there is one) with the "mixed" concessional and non-concessional components (plus paying their adviser fees from this account) - as this will reduce the taxable component (and embedded tax liability) quicker. Any lump sum (commutations) can also come from their "mixed" account to further reduce the tax liability quicker.
 
burmans said:
I think a better strategy would be to leave the bring forward provision until your last year of contributing. Effectively allows you 7 years of contributions.
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Well everything depends on the person, their situation (ability to contribute or re-contribute), their total super balances and other items:

Non-concessional contributions cap | Australian Taxation Office

Keep track of your non-concessional (after-tax) contributions, which are not taxed unless you exceed the cap.
www.ato.gov.au www.ato.gov.au
 
Quickstatus said:
Age 72 - contribute 3x120 for age 72,73,74.
Age 75 - contribute 3x120?. I thought can only do 1x$120
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Search for the below section in the link QF WP provided, there’s a worked example for this FY that’s useful.

Total super balance determines bring-forward cap​

 
Pushka said:
So salary sacrifice comes into play as well to determine the limit.
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The amount of non concessional contribution /recontribution or other voluntary contribution you can make including salary sacrifice depends on whether there is space between the TSB and the general transfer balance cap. The transfer balance cap is $2M for this financial year

If you have $100,000 space then that's all you can put in
 
On the market volatility side - last night's Wholesale Inflation data suggests that U.S. CPI etc might be in for a bit of an increase shortly which might cool the markets over there a bit.
 
burmans said:
Search for the below section in the link QF WP provided,
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Sure but my question is more the ability to transfer under the bring forward arrangements at 75 if TSB allows

If $360,000 is available in the TSB you comment suggests I can contribute $360,000 at age 75 (assume I brought forward contributions of age 73 and 74 where I contributed $360,000 at age 72) . Is that correct
 
Quickstatus said:
Sure but my question is more the ability to transfer under the bring forward arrangements at 75 if TSB allows

If $360,000 is available in the TSB you comment suggests I can contribute $360,000 at age 75 (assume I brought forward contributions of age 73 and 74 where I contributed $360,000 at age 72) . Is that correct
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My reading of the ato site below is yes but doesn't seem logical
Screenshot_20250815_134744_Chrome.jpg
 

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