Super Contribution Planning Strategy – an update from our Financial Planner Silvio Marinelli.
Under new legislation starting in the 2020 financial year, there is a strategy now to minimise capital gains tax in particular by using the catch up concessional contribution cap.
As an example, say in the 2022 year you are planning to sell a capital asset where you know you are going to make a capital gain, you can make nil contributions for super in the 2019, 2020 and 2021 financial years and claim the full $100K in the one year.
Once the money is in super, it then gives you the opportunity to invest that money in super into shares or property depending on your risk profile and overall situation.
Please note, there is a criteria to meet to be eligible to make catch up contributions. Remember that employer contributions (including SGC) count towards your contribution cap and thus will reduce the contribution you could have otherwise made.
If you have any queries about the above strategy, Email firstname.lastname@example.org or call 03 5990 1000 and ask to speak to our Financial Planning team.