SMSFs may be unaware of certain tax benefits

Australians who are self employed, nearing retirement or have self-managed superannuation funds may be at risk of missing out on significant tax benefits should they fail to transfer investment funds to retirement savings before June 30, HLB Mann Judd has warned.

HLB Mann Judd head of wealth management Michael Hutton said there are a number of very attractive superannuation opportunities that must be actioned by the end of the financial year in order to be effective.

“Take the example of a person who is self-employed with a self-managed super fund but also has equity investments with an unrealised capital loss in their own name.

“They could transfer shares into the superannuation fund, or sell the shares and contribute the proceeds to the fund,” he said.

In this example, the investor can take advantage of any tax benefits arising from the capital loss and concessional superannuation contributions available to the self employed, according to Hutton, but must be aware of the Australian Taxation Office’s view on wash sales.

“For instance, investors in Allco have seen its stock price fall dramatically this financial year, but nevertheless may still believe that the long-term prospects for that company are good and want to stay invested.

“They could consider selling the shares now and attract a capital loss, which can then be offset against any other capital gains they may have.

“A concessional contribution to their superannuation fund can then be made, which is then used to buy shares in the company within the fund.

“Alternatively, an off market transfer of the shares to the self-managed super fund could be made,” he said.