Re: Changes before end of June

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New Contributor
Posts: 3
Registered: ‎09-01-2017
Accepted Solution

Changes before end of June

[ Edited ]

I need to change the balance between my SMSF and my personal assets so as to reduce my exposure to having over $1.6m in my SMSF. My assets include franked and unfranked shares and hybrids, some unlisted property trusts and some unlisted managed trusts (shares and infrastructure). I would like to know if others have given much thought to their strategies under similar circumstances to move assets from the SMSF to my personal accounts

New Contributor
Posts: 3
Registered: ‎10-01-2017

Re: Changes before end of June

[ Edited ]

Hi Keith, 

 

Dependent on what an individuals marginal tax rate (MTR) may be, moving assets out of super may not be the best option. Yes only $1.6mill can be in pension phase and therefore have tax free earnings, any amount over $1.6mill can stay in accumulation pahse with earnings taxed at 15%. 

So if your MTR is over 15%, super is still a good place to keep your assets 

New Contributor
Posts: 3
Registered: ‎09-01-2017

Re: Changes before end of June

[ Edited ]

Thanks for reply. At present I have all my assets in super and almost none in my personal account so I figured I could move  assets with approx $50k (which would be tax free) of earning capacity to my personal account. My question was if I follow that strategy what type of assets should I transfer from my super?

New Contributor
Posts: 3
Registered: ‎10-01-2017

Re: Changes before end of June

[ Edited ]

Good morning Keith, 

 

An individual can earn up to $18,200 in income before you pay any income tax (give or take a couple of thousand with offstes/deductions etc.)  
Now with the $1.6mill limit in pension phase in-place and no ability to add anymore funds in the future, assets that have the greatest ability to grow could be best suited to a tax free (pension) environment, and income earning assets in a personal name may be the best fit as there would be very little need to have to worry about future CGT and at times, the income is fairly consistent and easier to estimate. 

 

Another consideration that you may have to look at is if you are moving assets out of superannuation is if you or your spouse/partner receive any Centrelink payments, will moving assets into your personal name have an impact?  

New Contributor
Posts: 3
Registered: ‎09-01-2017

Re: Changes before end of June

[ Edited ]

Your reply was pretty much in line with my thinking but the confirmation was appreciated.

New Contributor
Posts: 3
Registered: ‎10-01-2017

Re: Changes before end of June

[ Edited ]

Happy to help! 

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New Contributor
Posts: 5
Registered: ‎28-09-2015

Re: Changes before end of June

Depending on your age and perhaps other circumstances, there could also be the pensioner rebate and old age income rebate besides the $18000 tax free threshold. Check this out and you could be tax free for much more before preferring the 15% within superannuation accumulation balance. Unfortunately I have forgotten the names of the rebates. Someone out there could help perhaps.

Contributor
Posts: 46
Registered: ‎03-12-2015

Re: Changes before end of June

Also be careful how much you move out of Super based on current returns with interest rates at all time lows. If interest rates rise or shares do very well then you may end up paying much more personal tax than anticpated on the funds outside of super. Maybe consider using long term average returns of say 4.5% on cash and 5% on Term Deposits as well as 8.5% on equities (5% income incl franking and 3.5% growth) in your calculations.

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