Rollover & contributions - SMSF Solutions

Rollovers In

What is a Rollover

A rollover is when you, as a member, transfer some or all of your existing super between super funds, including SMSFs.

Things to consider before Rollover fund to an SMSF

You can choose to transfer a portion or the entire balance from your current superannuation account as a rollover.
A complete or partial rollover from your existing superannuation account could potentially result in the cancellation of any insurance policies associated with that account. It’s possible that there’s a minimum balance requirement to keep your insurance policy or income protection intact in your current superannuation account. For more information, please reach out to your current superannuation provider
Considerations regarding taxes and investment returns – It’s crucial to assess the possible tax consequences prior to initiating any rollovers, particularly since there may be capital gains tax implications from the proceeds of your current investment holdings. To get more detailed information, we recommend contacting your current superannuation provider
In the event that you’ve recently switched SMSF accountants, it’s vital to communicate your intention to perform a rollover into your SMSF. This enables them to ensure that all your SMSF information is current, with special attention to having the Electronic Service Address properly set up for facilitating rollovers
Typically, you have the ability to start rollovers through your personal ATO portal. Please proceed with a cautious and careful approach

Contributions

What is a Contribution

A contribution in a Self-Managed Superannuation Fund (SMSF) refers to the money that is added to the fund, typically with the intention of building and growing one’s retirement savings. Contributions can come from various sources.

Lists of contributions available

Concessional Contributions
Non-Concessional Contributions
Government Contributions
In-Specie Contributions
Split Contributions

Concessional Contributions

Concessional contributions in the superannuation system refer to contributions that are made before taxes are deducted, known as before-tax contribution.

Generally taxed within the super system at a reduced rate of 15% when they enter the super fund. This favorable tax rate makes them an attractive way to boost retirement savings, but it’s important to be aware of the annual caps set by the government for concessional contributions to avoid exceeding them and incurring additional taxes.

There are certain scenarios where concessional contributions may be taxed other than 15%:

Low-income Superannuation Tax Offset – If you earn up to $37,000 a year, you may be eligible to receive a low income super tax offset (LISTO) payment of up to $500. LISTO is an automated process, you don’t need to do anything. ATO will do data match upon you had lodged your individual tax return for the relevant income year, then issue a cheque or payment to your super fund
Div 293 tax – High-income earners with a combined income and concessional contributions exceeding a certain threshold (commonly $250,000) may be subject to an additional 15% tax, known as Division 293 tax. In this case, their concessional contributions are effectively taxed at 30%, which is 15% more than the standard rate. Tax payer has the choice to nominate the DIV 293 tax to be paid from its super fund. (SG of $250,000 is equivalent to $27,500 which equals to the Concessional contribution cap)

For example, SG $6,200, Deductible contribution $5,000, Salary sacrifice $5,000.

Then, remaining cap for the year is $11,300.

Types of Concessional Contributions	Contribution cap
Super Guarantee – 11% for FY2024	$27,500 in 2023-24 income year
Salary sacrifice
Personal deductible contributions

It is worthwhile to know more about Carry Forward Unused Contribution Cap Amounts. It is a provision that designed to help people with lower contributions in previous years catch up on their superannuation savings when they have the capacity to do so. There are several conditions involved, for example, have a total super balance of less than $500,000 at 30 June of the previous financial year, and have unused concessional contribution cap amounts form up to 5 previous years.

Our software is specially designed to make information readily available to trustee. We can assist you to load up contribution history to our system.

Non-Concessional Contributions

A non-concessional contribution is a type of contribution made to a superannuation fund with after-tax income, meaning the money has already been subject to income tax. Non-concessional contributions are generally not taxed again when they enter the superannuation fund.

There are limits on how much can be contributed as non-concessional contributions in a financial year. These caps are set by the government. Under certain conditions, individuals under a certain age can make non-concessional contributions over a three-year period, allowing them to contribute a larger sum without exceeding the annual cap.

From 1 July 2021, the non-concessional contributions cap is $110,000.

If you make contributions above the annual non-concessional contributions cap you may be eligible to automatically access future year caps. This is known as the bring-forward arrangement. It allows you to make extra non-concessional contributions without having to pay extra tax, if you meet certain eligibility conditions.