Superannuation Discussion + market volatility

[SydneySwan]

Can't find an answer to this question on the ato site, if anyone knows a reference?
Can you claim a deduction (it will be >$30k with the bring forward rule) from an accumulation contribution that has been transferred into a pension account at time of submitting the "notice of intention..."?
Plan to put in $120k into mrsB super accumulation account this month then tsf almost all the accumulation balance to a pension account (same superfund Unisuper), iff can still later this calendar year (when '26 tax obligations are clearer) claim part of the $120k as a concessional contribution.

I would imagine this is legal but I am not sure.

When you put in the notice of intention form to claim a tax deduction, the super fund will immediately deduct 15% tax based on the amount you are claiming. If you no longer have sufficient balance in the accumulation fund to cover this then it will notify the ATO who will charge the debt to your personal tax account.

 

[burmans]

This is what I found.

Importantly, you need to submit the form of your intention to claim a tax deduction and receive acknowledgement from your super fund before:

• Completing your individual tax return for the relevant year;
• Transferring your super to a different super fund;
• Using all or some of your super to start an income stream;
• Withdrawing some or all of your super balance; and
• At the end of the financial year after the year, the contribution was made.

 

[Quickstatus]

and have cleansed $119,000

You mean change it from concessional to non concessional?

 

[Pushka]

You mean change it from concessional to non concessional?

Yes. Non concessional contribution = no tax to non dependents on death.

 

[Brissy1]

This is what I found.

Importantly, you need to submit the form of your intention to claim a tax deduction and receive acknowledgement from your super fund before:

• Completing your individual tax return for the relevant year;
• Transferring your super to a different super fund;
• Using all or some of your super to start an income stream;
• Withdrawing some or all of your super balance; and
• At the end of the financial year after the year, the contribution was made.

Dot points 3 and 4 seem highly restrictive and I suspect very loose with the wording , but to be safe perhaps I'd better, if I can, create a new (2nd) accumulation account to tsf the $120k non-concessional and leave it all there until I make whatever part of that, a concessional contribution. So just an extra ~15% tax on earnings on the $120k for 6 months.

 

[Pushka]

So we are partly through our Super wash. Consulting financial planners and today lawyers. The more questions you ask the more questions that need to be asked. Waiting for July to do the major move for both of us plus an evener upper for me as I paid out a mortgage from super a few years ago.

So this 'politicians won't call it a death tax but it's a death tax' on superannuation payments to non dependents. If you use a Binding LPR nomination (meaning it goes into your estate and not to a person) means that the 2% Medicare levy is removed. Anyone else heard that?

The lawyer had no idea what I was talking about today when I said we were actively pursuing the recontribution process. She's young with kids. She doesn't need to.

We've set up a separate super policy that only receives personal contributions and after July will set up a pension fund funded from that amd gradually whittle down the existing funds. We still have to keep one super fund open to receive work contributions.