Many Business owners are overlooking opportunities for improving their retirement savings, while others are facing penalties by leaving their super planning until the last minute. Whether you have a SMSF or retirement savings in an industry or retail fund, it’s important to consider your superannuation contributions in alignment with your overall tax planning. This will allow you to capitalise on opportunities that deliver ‘super’ benefits.
You’d be forgiven for thinking that the rules around super are forever changing – causing confusion and additional complexity. Contributing large amounts into super has become more difficult over the last few years, however, despite all the changes, superannuation still remains one of the most tax effective structures available to you.
Understanding contribution caps and contribution allowances is the key to building your retirement savings. For business owners, advance tax planning advice will help you make the most of opportunities to contribute to super such as taking advantage of the catch-up concessional contributions provision. For business owners, your super contribution strategy should start sooner rather than later.
Advance tax planning provides opportunity to review assets held within the SMSF to determine any actions necessary for complying with the various rules and regulations. There may also be Capital Gains Tax relief considerations resulting from moving assets within the same financial year.
Depending on individual circumstances, there are numerous other super and tax related matters including salary sacrifice that need to be considered.
The goal of advance tax planning is to only pay the amount of tax necessary to meet your legal obligation. Then in alignment with your cashflow position, extract wealth from your business so that you may boost your personal financial position in the most tax effective way possible.
At Core, we are licensed superannuation strategists for self-managed super funds and offer strategic advice for trustees. We have a limited license with The SMSF Expert Pty Ltd (AFSL 445113).
To learn about the benefits of advanced tax planning for your business or to make a tax planning appointment, please contact your Core business accountant on 07 5438 8088.