Grant Abbott - Super Max Strategy

Discussion in 'Accounting & Tax' started by ChrisP73, 1st Jan, 2020.

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  1. ChrisP73

    ChrisP73 Well-Known Member

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    https://www.youtube.com/user/SMSFstrategiesTV/discussion
    Grant's Three Tax Strategies for High Income Earners to use Now! In the latest session I give my best ever Super Max strategy to reduce income taxation for high income earners. No it is not negative gearing or some property investment but great for doctors, lawyers, consultants, FIFO workers and anyone with a high income this year where tax is a real worry. And age does not matter as it can be used in or out of a SMSF. Watch the video here


    I've watched this a couple of times now (strategy 1), and I think I can follow most elements but it's not clicking for me why this works (not without an actual worked example at least). Apparently the strategy "doesn't work" if you don't minimise concessional tax in the super fund through other deductions/franking credits. So, in essence is it just about 'shifting' the deduction from the SMSF tax return to the individuals personal tax return - or is there more to it?

    Would be good to see a worked example before and after across both tax returns to understand it.
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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  3. Paul@PAS

    [email protected] Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Yes. Credit to Grant for some of that. Grant has many strategy ideas. Super is a wealth strategy. Bits here and there each year X time X growth. Compare the pair.lol.

    I like the leading member super fund and related trusts too. Bloodline and lineal protections are a good element of estate planning
     
    Last edited: 17th Jan, 2020
  4. Paul@PAS

    [email protected] Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    I have another one to add to this. As mentioned the taxpayer super deduction is capped at their assessable income being $0.

    What law prevents that taxpayer increasing their deduction by overstating income? Can work to limit concessional and non concessional caps being blown.

    Can the Commissioner amend to exclude the taxpayer reported income? Part IVA isn't useful. Tax laws don't actually assume taxpayers over estimate income :)
     
  5. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Some of his ideas are good, but some are just silly marketing - moats anyone?
     
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  6. ChrisP73

    ChrisP73 Well-Known Member

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    Finally got my head around this. It's a bit of theatre really. Just shifts tax, no net change. The strategies to minimise super fund tax are just an attempt to make the numbers look better but could be achieved regardless. Some very minor advantages around deferring tax payments, but really all pretty fringe stuff.
     
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  7. Paul@PAS

    [email protected] Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Usually yes. However for a older person with no earned income with external wealth and investments (trust etc) this could be a highly effective strategy to shift assets and wealth using concessional and non-concessional caps without the apparent penalties most attribute to excess contributions
     
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  8. Nodrog

    Nodrog Well-Known Member

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    I only watched a bit of the video but first thought was where does Div 293 factor into this?
     
  9. ChrisP73

    ChrisP73 Well-Known Member

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    It is interesting that using the ECC strategy there's no significant constraints on contributions to super!
     
  10. Paul@PAS

    [email protected] Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    There are.. Its a mathematical limitation. Most people look at the cap not the maths
     
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