New Developments On Super Contributions

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Running Time: 7:12

Date: 01/05/2012

Worried about excess payments into super before the end of the financial year? Here's a new decision from the ATO

If you think you've overpaid into your super for the year, hold on! Michael Jones tells us that a recent decision by the ATO (ID 2012/16) has stated that a contribution made in June is not counted as a contribution in the financial year it was made, but in the following year when it was allocated. This could be useful inmanaging potential excess contributions - as long as the allocation is made after June 30. But make sure it doesn't cause a problem next year! It also provides a means to get an extra deduction in a given financial year, and it could help if you're transfering an asset into a super fund and the value of that asset is greater than your contribution limit. Michael says you just need to make sure that your circumstances are similar to the case concerned in the ATO decision, and that you manage the details correctly. Or talk to your adviser. Also this month, a case from the ATO (TD 2012/1) concerning an investment loan, a home loan and a line of credit. Beware the anti-tax avoidance rules when it coes to interest payments, in this case on the line of credit. Use the interest payment proceeds from the investment loan to pay down the home loan, and you could be in trouble with the ATO.