Powered by MOMENTUM MEDIA
subscribe to our newsletter sign up

Time for SMSFs to review salary sacrificing

Golden eggs

With the new superannuation rules in place from 1 July 2017, now is the time for SMSF trustees to review their salary sacrificing arrangements, says Perpetual Private.

Perpetual Private’s head of strategic advice Colin Lewis says clients who have salary sacrificing arrangements in place need to review their levels of contributions now that the lower $25,000 concessional contribution is in place.

“They need to ensure that they don’t over-contribute so they really need to review their salary sacrificing arrangements straight away,” Mr Lewis said.

These clients also need to consider whether making salary sacrificing arrangements is the best strategy.

“Will they continue using salary sacrifice or [switch to] personal deductible contributions because, in some ways, doing your own contribution or claiming a tax deduction gives you more flexibility and more control,” Mr Lewis said.

“[For example,] if you’re normally making contributions through salary sacrifice on a fortnightly or monthly basis, you could put that little bit of extra cash into a mortgage offset and at the end of the year, put in the exact amount of contributions between your SG and your cap.

“So there are a couple of things to think about there in terms of the level of contributions being made and how contributions are going to be made.”

Time for SMSFs to review salary sacrificing
Golden eggs
nestegg logo
subscribe to our newsletter sign up
FROM THE WEB
Recommended by Spike Native Network
just wondering - Fintech advisers mostly appear to invest in a bundle of ETF's. You don't mention about the additional potentials risks of ETF investments over direct.......
Mort Schwartzbord - It was always apparent from the initial announcement by Labor that the abolition of negative gearing claims would apply to all investments. This will.......
Maureen - Perhaps the change is a reflection of age. Y0unger people are not as charitable as previous generations. The older people who used to give are now.......
Ian S Falconer - The Grattan Institute have again demonstrated that they are totally out of touch with the real world.
There are 'ooo's of self employed people who.......