Maximum contributions to SMSF pre-June 30

Take this example, husband is over 75 and wife is above 65 but below 75. Is the below correct?

Husband - He can't make personal contributions of even one cent to the SMSF either as a concessional contributions or non-concessional contribution. He's considered too old by the government and is stuck with whatever he currently has in his SMSF.

Wife - She can make personal contributions of "concessional contributions (max of $35k)" which the SMSF pays 15% tax on but she can claim as a personal tax deduction at her marginal rate "eg. 45% if highest tax bracket". There is no "bring-forward rule" for higher than $35k. If she got super contributions from her employer (eg. $5k) then her max personal concessional contributions would be $30k.

In addition, she can also make personal "Non-concessional contributions" without claiming a tax deduction. This amount is $180k. Since she is over 65, she can't use the "bring-forward rule" rule of using the next 2 years contributions to this year, meaning she can't contribute $380k ($180k + $100k + $100k).

Therefore the maximum contributions the wife can make prior to EOFY is $215k (minus any super contributions from here employer). Husband can't contribute anything and is stuck. Both the husband and wife can immediately convert all of their super to "Pension phase" immediately so all income & capital gains are tax free (each member balance less than $1.6mil).

There's also a "10% income test rule" where the wife must earn less than 10% of her income from employment. Say the wife worked part-time this financial year making $25k but stopped working since December 2016, does that mean she would need to have over $250k in income for this financial year ($225k from other sources) and if not, she can't make concessional contributions? If she also got another $7k "non taxable earnings" paid for vehicle usage/expense reimbursement, would that come into the "10% income"?

Another question, can a commercial property held in a discretionary trust with personal trustees be transferred to a SMSF?

 

yes this would be possible

 

Would I be correct in presuming the property would need to be valued at that time by a registered valuer, CGT would be payable based on the already increased value of the property held in the trust & possibly stamp duty would be liable by the SMSF?

 

transfer would be a CGT event and possibly dutiable transaction so stamp duty may apply, but there are exemptions in many states - depending on a few things.

 

A transferred would likely be a contribution but the SMSF could likely purchase the property. As discussed stamp duty and CGT will almost certainly apply at full market value.

 

For asset protection reasons you would want to sell the property, or have the trustee sell, for full market value.

 

Anyone able to confirm if my understanding in the 1st post is correct? Thanks

 

A number of incorrect matters are shown above. (Highlighted)... Personal advice is absolutely required to address tax and financial advice issues

The commercial property may be eligible (or may not) for small business CGT concessions and have some GST issues. Complex and advice would be prudent