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06/07/23
13:37
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Originally posted by rebel1:
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A couple questions. If a person puts their own money from earnings, is the money classified as a tax deduction? This is for additional earnings not associated with main PAYG job. Therefore making the $$ non taxable . looking at this new fin year not the previous one. Then the money put in, I understand is taxed at 15% ? The next question, is that money then tied up in the super fund (A SMSF) until the person retires? Or can the person make withdrawals on the money they put in as extra. If it can be withdrawn, what then would tax implications be? As a scenario: A person this current financial year earns $100k from extra business activities in their own name . they put the whole $100k into their own super fund. At this point $15k needs to be paid in tax. 2 years time they want to withdraw $85k if they can. What are the tax implications ? Is it then classed as earnings? Or is it better they Salary sacrifice from their PAYG income the $100k ? I have read the amount that can be put in can be averaged over 5 years, so they can group the previous 4 years plus the current amount value in 1 year
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I think making your own contribution is equivalent to salary sacrifice - and I am sure previous poster is correct on UP TO A MAXIMUM of $27,500, after which the taxation changes to your higher rate. I emphasise I think .