Peter Thornhill 2017 #2

No you can't.

 

But you can effectively salary sacrifice out of after tax money from 01 July so if you can decide which account the funds go into when you send it to your super accounts.

 

Salary sacrafice after tax money from 1 July? Please explain???

You appear to be referring to non-Concessional contributions (NCCs)? Nothing changes from 1 July other than annual limit and Total Super Balance cap set at $1.6 mil. That is, no more NCCs allowed when a members Total Super balance reaches $1.6mil.

Prior to 1 July @oracle can potentially make a NCC of $540k into his wife's accumulation account depending on what has already been contributed in the last couple of years. And the same into his. From 1 July that reduces to $300k using the 3 year bring forward rule.

There are other strategies using contributions reserving for CCs where you bring forward next year's CC which is useful in reducing CGT in a particular year. But that's best done through an advisor who knows what they're doing.

 

Employees can make tax-deductible super contributions from July 2017

From 1 July 2017, all individuals under the age of 75 will be permitted to claim tax deductions for personal super contributions (voluntary concessional contributions). It removes the current 10% income test.

From these articles:

Super changes (July 2017): Planning ahead for the 2017/2018 year
Employees can make tax-deductible super contributions from July 2017

So I can get my usual pay from my employer and then send some of that money into super as a CC. I could put it in my super account or I could put it is my wife's super account (or someone else's for that matter), effectively splitting the contribution any way I choose as far as I can see.

 

I suggest you read the rules more carefully and / or speak to your Super fund. Unless your wife is earning employment / investment income she can't claim a tax deduction in her name against the personal CC. If you want to claim a deduction against your CC you need to make the CC to your Super accumulation account then arrange for a "spouse split" of same to your wife's accumulation account.

The maximum age for above is 65, the age 75 change didn't get through.

From SuperGuide:

 

We are both working. Her company would reduce her guarantee payment if she salary sacrificed.

 

From July 1 the maximum CC for each member is $25k "including Super guarantee employer contributions". If you want to get more CC than that into her accumulation account then you will have "spouse split" your CC to her.

Claiming deductions for personal super contributions

 

Sure.

But you can more or less get an even split of $25K into each account by using the now widely available mechanism, taking into account the super guarantee amounts already flowing into each account.

 

Yes but that didn't appear to be what @oracle was asking. And all the criteria I mentioned in previous posts are relevant. Eg wife earning sufficient income to be able to claim a tax deduction against the CC. Then he needs to make a CC then spouse split to her. If she's not earning income then $25k CC is the max achievable.

@oracle is your wife earning enough income to make a $25k CC tax deduction worthwhile given there is 15% tax (30% > $250k) on the CC?

 

Yes, we both are earning enough to contribute $25K into super.

Cheers,
Oracle.

 

Very good. Well hopefully it's clear now how to get the $50k (less contributions tax) into your wife's accumulation account.

 

Yup...Thanks

Cheers,
Oracle.

 

Oh thanks - didn't know about the "in-specie" but hoped that something like that existed .

I've got a few years to wait until the market tanks then before transferring . I'd better buy some first!
Thanks very much @austing - I really appreciate all your time and sharing.

 

Look into contribution reserving if CGT is likely to be a bigger hit in a particular year (eg sale of lumpy asset like property):
Use of contributions reserve in a SMSF around 30 June

 

2011
Survival guide to edgy times with shares

SYDNEY investor and investment educator Peter Thornhill regards the prevailing sharemarket turbulence as an ideal opportunity to expand his $5 million-plus share portfolio. Indeed, Thornhill is lifting his level of gearing to grab stocks dumped by unnerved investors.
Thornhill, the principal of Motivated Money, says institutions and private investors "seem to have gone mad" by selling shares at crazy prices. "But the greater downward pressure they put on prices, the better the advantage for me," he emphasises. "I am more interested when things are falling over because I am able to buy."

He points to Cochlear as an example of one of his best buys during the downturn this month. "Cochlear had just announced a record dividend of $1.20 a share and the share price has fallen from $82 to $63. "So I figure, here's a wonderful dividend; I'll top up."

Thornhill is a believer in focusing on what he can control during times of market turmoil. This means concentrating on buying opportunities, keeping investment costs and taxes to a minimum -- "these costs come out of investment income" -- and ensuring that interest on his investment loan does not exceed dividend income because he is semi-retired.

 

And therein lies the message!

 

Bump... tickets available for Peter Thornhill Sydney and Melbourne events in my signature.
Its a rare event for Melbourne... and this is a privately arranged event for Sydney (cheaper than Sydney uni)... a few tickets left.

 

Very exciting Gockie not long now!!

many tks for your help co-ordinating...for those still undecided, do come along !
i think 2 or 3 tickets left... we are expecting north of 20 now

 

Great stuff @virgo today! Very successful!

 

Hi everybody,
I spoke with Peter this afternoon at today's seminar and asked him about the possibility of an second level/advanced event.
He said yes, that's a possibility, if attendees provide questions and content to be up for discussion.

So... if such an event was held in Sydney, who would be interested?
To qualify as "advanced" you should have already attended his course or have read his book.