For a long, long time I have been going on about the great opportunities available if a family used their family super fund and financial resources to convert taxable income such as salary, trust income, bucket company income plus income from trading companies and trust into super contributions. Apart from tax – what a perfect asset protection play. The question is how much can we convert? Well, there are no limits on tax deductions for individuals and employers. But there are limitations for clients including access to super (can you believe excess concessional contributions can be withdrawn up to 85%), the impact of contributions tax (which can be reduced with franking credits and ESIC offsets) and to 30 June 2021 – an excess concessional contributions charge (now repealed). So I started meandering down a couple of strategy lines using the catch up concessional contributions, a family, a family super fund and came up with four great case studies on how the system works and how it can be used to reduce a family’s overall tax liability. Now my brain hurts from doing all of this meandering and as one of our LightYear Docs users, before I publish it, I would like you to review it, pull it to pieces, check the numbers and also come up with some spin-off strategies for Div 7A and other issues we face. If you have any feedback let us know on our support channel on the front page of the site. I think you are going to be very surprised, impressed and best of all, while your competitors still believe concessional caps cannot be breached, you will be there reducing a family’s tax because of it.
You can review here – Must_use_Tax_and_Super_strategy