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.

 

[Brissy1]

I've been on holidays so just catching up with the budget and the changes to smsf and wow, general advice from my smsf administrator is...no changes, not even to cgt. So cgt is 10% (held >12 months), and with Div296 25% of that portion in most cases. As I understand it.
I suspect because of pressure/influence from Industry superfunds.
Although if comparing a 25% rate in super with the min 30% (or 32% medicare?) less inflation outside super, latter can be lower tax. I'm using 10% gross cg and 3% inflation, pa.
Like gravity $ will flow to lowest tax area for holding assets.

(Ot, but I think determining the marginal tax rate applicable for 10-20 years of gain in the single year one sells a long-term asset, pushing even low income persons into the top bracket is unfair but previously was indirectly addressed by the ½cgt calculation. Also now a full pensioner with no other income is going to be taxed 30% realising their $1000 profit on a few bhp).

 

[Pushka]

now a full pensioner with no other income is going to be taxed 30% realising their $1000 profit on a few bhp).

I read about that yesterday. A pensioner selling anything that has gained in value except home will get slugged a tax. The solution for this was if super is under $500,000 AND they can satisfy a working release, AND aged under 75, they can contribute a similar amount to super as a concessional contribution.

Unintentional consequences. Has to be stopped.

 

[lakeman]

I read about that yesterday. A pensioner selling anything that has gained in value except home will get slugged a tax. The solution for this was if super is under $500,000 AND they can satisfy a working release, AND aged under 75, they can contribute a similar amount to super as a concessional contribution.

Unintentional consequences. Has to be stopped.

Not quite.According to the AFR.
“Income support recipients will be taxed on any capital gain at their marginal tax rate after the new inflation-adjusted CGT discount is applied, but avoid the 30 per cent minimum CGT tax.”

 

[CaptJCool]

Not quite.According to the AFR.
“Income support recipients will be taxed on any capital gain at their marginal tax rate after the new inflation-adjusted CGT discount is applied, but avoid the 30 per cent minimum CGT tax.”

There’s a whole pile of interesting scenarios depending on if they’re refundable or non-refundable credits
Of course no tax until sold
And there could be carry forward losses offset first


What I imagine might happen is a drift from investment property to shares as franking credits are refundable. And selling the principal residence for no tax and going and living in the investment property for some years to “make it the next principal residence and thus reduce / remove the tax on capital gains”

 

[SYD]

I've been on holidays so just catching up with the budget and the changes to smsf and wow, general advice from my smsf administrator is...no changes, not even to cgt. So cgt is 10% (held >12 months), and with Div296 25% of that portion in most cases. As I understand it.
I suspect because of pressure/influence from Industry superfunds.
Although if comparing a 25% rate in super with the min 30% (or 32% medicare?) less inflation outside super, latter can be lower tax. I'm using 10% gross cg and 3% inflation, pa.
Like gravity $ will flow to lowest tax area for holding assets.

(Ot, but I think determining the marginal tax rate applicable for 10-20 years of gain in the single year one sells a long-term asset, pushing even low income persons into the top bracket is unfair but previously was indirectly addressed by the ½cgt calculation. Also now a full pensioner with no other income is going to be taxed 30% realising their $1000 profit on a few bhp).

The removal of the pre 1985 asset CGT exemption is going to trip up quite a few people.

That and for other investment properties, property valuers are going to be making a pretty penny for a while…

 

[CaptJCool]

Age pension figures for March 2026 dropped recently






Net lift around 11,000 continuing the pattern of small numbers of newbies

 

[Pushka]

Not quite.According to the AFR.
“Income support recipients will be taxed on any capital gain at their marginal tax rate after the new inflation-adjusted CGT discount is applied, but avoid the 30 per cent minimum CGT tax.”

They are still going to pay CGT that likely they didn't have to before.

The removal of the pre 1985 asset CGT exemption is going to trip up quite a few people.

That and for other investment properties, property valuers are going to be making a pretty penny for a while…

Really? I didn't know that at all. First I've heard of it. That devil in the detail stuff.

 

[tgh]

Starting to wonder if we might have been better with shorten and the double tax on dividends...
A really massive stitch up.

 

[CaptJCool]

Starting to wonder if we might have been better with shorten and the double tax on dividends...
A really massive stitch up.

The issue is like most Labor govt they find it hard to restrain spending

Tax receipts have gone up $300 billion in 5-6 years off a base of $460 billion

Yes, you read that right, and they can’t keep their hand out the till

The NDIS for example DOES NOT include any motor accident victims at all. They are in the NIIS scheme so someone is “taking us for a ride”

 

[SYD]

They are still going to pay CGT that likely they didn't have to before.

Really? I didn't know that at all. First I've heard of it. That devil in the detail stuff.

Yep, see page 4.

https://budget.gov.au/content/factsheets/download/tax-explainers-negative-gearing-capital-gains-tax.pdf

Basically pre-1985 stuff will be subject to CGT for any gains post 01 July 2027. Gains up until then are still exempt AFAIK. I wouldn’t be surprised if there are some fire sales leading up to July 2027. Those who can might move the proceeds into super and/or upsize the principal residence.