The Australian Taxation Office (ATO) has advised people to consult financial planners or tax professionals to make sure they are not “breaking the bank” when trying to take advantage of the new simpler super legislation.
In an information circular to tax payers, the ATO reinforces warnings already issued by the Commissioner for Taxation, Michael D’Ascenzo, with respect to selling assets or borrowing money to invest into superannuation.
In particular, the ATO warned that consumers who sold their rental property to make cash payments into superannuation needed to ensure they had funds set aside to meet tax liabilities such as capital gains tax.
It said this was also the case with respect to listed shares.
“To be sure you’re not breaking the bank, talk to a tax professional or financial planner about the best way to grow your super for retirement,” the ATO said.
