Other Contributions

1. Small Business 15 year CGT or retirement Concession
2. Spouse contributions
3. Direct termination payments
4. Government co contributions
5. FHSA contributions

Small Business 15 year CGT or retirement Concession

The maximum contribution that can be made to your super fund is a life time maximum threshold of $1,205,000 (30June2012-see <rates page> for updates) at time of writing click for threshold changes. Further these do not need to count towards your non concessional cap limit.

If you’re a Small Business that qualifies for either the 15-year asset exemption or small business retirement then you could pay no tax on the sale of your business. This involves obtaining other tax concessions and then electing the remaining amount to be rolled over to your superannuation fund. For further info on the small business 15yr exemption see <ATO-Link> & Retirement life time retirement exemption see <ATO-Link> or <contact us>.

All members have a life time limit they can contribute to there super fund known as your lifetime cap. This is because the Tax Office wants to limit the benefits of tax free earnings in your super when your in retirement.

Another advantage of this contribution is that Small Business can elect that the amount rolled over into your super fund be excluded from your non concessional contributions, meaning you can increase the contributions to your super. To do this you need to:

• Notify your superfund of this intention using the Capital Gains Tax ELECTION Form
• The amount must be reported in the income tax return.

Spouse contributions

• Yes you can make contributions to your spouse where she earns less than $13,800pa.
• You can claim up to a $540 rebate for contributions (18% of maximum $3K contribution)
• Your superfund does not tax these spouse contributions
• Your spouse needs to be a member of the fund.
• Your spouse must be under the maximum age contribution limit.
• Your spouse contribution is not tax deductible
• Spouse contributions cannot be accepted from 70.
• What are the advantages?
  1. Maximizing the tax free withdrawal part of your super
  2. Savings of the spouse taxed at the low tax rates of super
  3. Both can take a pension at retirement

Here’s what the ATO has to say <ATO-Link>.

Direct termination payments

Transitional termination payments can only be rolled over to Super until 30 June 2012. Transitional termination payment can be received from your employer if you stop working, and you can ask them to rollover some or all
of the payment into your nominated complying super fund, Retirement Savings Account (RSA) or Approved Deposit Fund (ADF) or to purchase a super annuity. This amount is known as a ‘directed termination payment’.

See what the ATO has to say <ATO-Link>.

Government co contributions

The government can pay co contributions up to $1,000 into your own super SMSF if your income is less than $61,920 but greater than $31,920 then you can receive a part payment of the co contribution. If your income is less than $31,920 you receive a part payment of the co contribution.

The co contribution is currently set to increase to $1,250 in 2013 & 2014 and from 2015 further increase to $1,500.

Co contributions are not counted towards the non concessional caps. Here’s what the ATO has to say <ATO-Link>.

FHSA contributions

If you have a First Home Saver Account, the Government will make Co contribution to a maximum of $935 with an account cap $85,000 (indexed in $5K increments). Here’s what the ATO has to say about FHSA <ATO-Link>, and about closing a FHSA <ATO-Link>.