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Thinking of Rolling Your Super over? Take A Moment To Read This…

Over the last few years, everyone has been able to claim a tax deduction for personal contributions to their super fund, provided that they have been able to meet certain conditions.

First, the tax deduction cannot put you into a negative income position. A negative income position is when the expenses exceed the revenues – and superannuation funds are all about your revenue. So, for example, if you earned $20,000 for the year, you wouldn’t be able to claim more than $20,000 as a tax deduction for making personal contributions to super.   Of course, it is very rare that people will earn less than the amount they put in super but it does occasionally happen

The second requirement is that you need to lodge a Notice of Intent To Claim A Tax Deduction with your super fund. This needs to be done within a certain period of time. It needs to be first lodged with your super fund and then accepted prior to the lodgement of your income tax return.

However, there is a potential problem if you decide to roll your super over to another fund. This is because once your super has left your current fund, you are no longer able to give them a valid notice of intent. You are also unable to give that notice to the new fund, which means that you have lost the ability to claim a tax deduction for all of those contributions as a result.

Plus, you won’t simply be able to withdraw that money because you aren’t allowed to claim the tax deduction – unless you meet strict requirements, your super fund money cannot simply be taken out.

If you are in the process of making personal contributions to your superannuation, and you intend to claim a tax deduction for those contributions, you should make sure that you start a conversation with us prior to completing your tax return or touching the super that you have already contributed. It is too late to deal with it after the event, so make sure that you get a step ahead.

If you’re someone who often finds it difficult to make large lump sum payments for goods or services, you may want to consider looking into “Buy Now Pay Later” services.

Buy now pay later essentially means that, rather than paying in a full lump sum payment for a product or services rendered, there may be an option to pay through instalments of a certain amount over a set period to make the sum of the full amount in total. This method should allow you to pay in full for the product or service without overly straining your finances – you pay back what you can, as agreed upon when you begin the buy now pay later service.

Some popular buy now pay later services include Afterpay, Zip Pay, Brightepay, and some credit card networks such as  Mastercard and Visa, can offer buy now pay later arrangements.

Though it can be a convenient, immediate solution, it may be challenging to juggle the necessary repayments with other financial commitments. It’s not always the most appropriate method for people, and you should bear in mind your situation and ability in paying back the amounts. 

Before you sign up, keep in mind: 

  • It becomes easier to overspend with buy now pay later services, so know your limits on what you can and can’t afford.
  • You will be charged fees and costs to use the service, which can add up to a princely sum in and of itself.
  • Keeping track of your payments can be tricky if you’ve signed up for multiple services.
  • It could affect your loan applications for a car or mortgage as lenders consider buy now pay later spending just as much as your credit score.
  • Late repayments can appear on your credit report, which affects your ability to borrow money in the future.
  • Layby can be a cheaper alternative to buy now pay later, with no account-keeping or late fees to consider

If you are someone who could make use of BNPL services, you may wish to:

  • Ensure that when using the BNPL service, you stick to a set limit on what you spend so that you can comfortably pay it back later. 
  • Aim only to have one BNPL account at a time to manage payments through, rather than confuse yourself with multiple payments across different providers.
  • Always budget for bills, loan payments and BNPL payments, and 
  • Rather than use your credit card for payments to your BNPL account, consider linking to your debit account instead.

If you would like assistance in planning your financial future, help in managing your budget or some friendly advice, see us for a chat about what we can do for you.

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John Briggs

Jane Noller has been my accountant for the last 15 plus years. I can testify to Jane’s professionalism and expeditious manner in dealing with the day to day issues that surrounds our business accounting.

John Briggs

Registered Building Certifier

David and Alison Parker

I have been consulting J L Noller and Co. (more specifically Jane) for six years and during this time I have found her to be professional, efficient and easy to discuss all accounting and taxation matters with. Her office team are all polite and friendly also.

David and Alison Parker

Business Owner

Carl Gillmore

I have used Jane & the team for the last 6 years for all of my business & personal accounting needs. They have always been professional, easy to talk to & available when we have needed assistance.

Carl Gillmore

Carl Gillmore Landscape

John Briggs

Jane Noller has been my accountant for the last 15 plus years. I can testify to Jane’s professionalism and expeditious manner in dealing with the day to day issues that surrounds our business accounting.

John Briggs

Registered Building Certifier