The Making the most of SMSFs paper outlines the double deduction strategy and the advantages it offers SMSF members over industry and retail funds.

This article was developed and supplied by Heffron Managing Director, Meg Heffron. Meg has been working exclusively with SMSFs since 1998. Her firm specialises in all aspects of SMSFs – administration, actuarial, education, technical support and documents. They have an extensive range of content and CPD certified education (including specialised courses) for advisers and accountants looking to learn more about superannuation and SMSFs (www.heffron.com.au)

Summary:

• Anyone between 18 and 67 (and in some cases even people up to 75) can make personal super contributions and claim a tax deduction for them.
• In an SMSF (but not in other funds) it’s even possible to bring forward the next year’s tax deduction and claim two years’ worth at once without breaching the contributions caps.
• There are some important timeframes, rules and paperwork members must be aware of.
• Non-SMSF funds must allocate contributions within 3 days of their arrival – making this strategy impractical.
• Member eligibility must be closely considered before executing this strategy.