Speaking at this week’s SMSF Day, Smarter SMSF Chief Executive Officer Aaron Dunn said more will come with changes to work test requirements that allow for non-concessional contributions for up to 28 days at the end of the month when a member turns 75. I explained that I will be able to contribute to Contributions and pension receipts are now being made at the same time.
Regarding these changes, which took place on July 1, Dunn said: It may benefit individuals who want to put more money into their Super later in life as they need more time to grow their member balance. It may also benefit clients who wish to minimize taxes on their non-dependent beneficiaries.
They will also see “the greater entanglement of making donations while withdrawing benefits at the retirement stage.”
However, when considering this kind of strategy, Dunn said SMSF experts will pay close attention to clients with existing revenue streams that may have been excluded prior to January 1, 2015. said there was a need.
“If you have clients with existing sources of income that are covered by the Commonwealth Seniors Health Card (CSHC), you don’t want to touch them,” he warned.
“Where there is an income source established before 1 January 2015, pensions derived from it are excluded from the calculation. , included for eligibility purposes both as an income test in the sense of an age pension and for eligibility for the Federal Elderly Health Card.”
Dunn said the decision to combine non-concessional contributions with these existing account-based pensions means that all assets, including both pensions and contributions, will count for CSHC and superannuation purposes. I warned you.
“So I don’t want to touch pensions before January 2015,” he said.
He pointed out that customers likely to have these grandfather’s sources of income would be in the 70-75 age range, as this age group would be eligible to start their pension at that time.
“Be very careful with these notions of merging and back-and-forth strategies because if you suddenly get knocked out because you have $30,000 or $40,000 worth of income counting from your pension, you’ll get pretty angry. Because there could be one client who is in. Otherwise it was excluded,” he said.
Dunn said the Labor government has announced possible changes to the Commonwealth Seniors Health Card eligibility criteria.
The Department of Labor previously considered raising the income test to access the Commonwealth Senior Health Card from $57,761 to $90,000 annually for singles and from $92,416 to $144,000 annually for couples. announced that it would).