A trust doesn’t technically distribute to a super fund like a discretionary trust but you as a member, can contribute the profit you receive from a trust into super.
The current tax deductible cap into a super fund per year is $27.5K.
Keep in mind that when money goes into super, there is a 15% contribution tax. If it goes into accumulation, you will get 15% tax on what it earns, and if it goes into a pension, you will get 0% tax on what that money earns. So, you will get your 27.5% cap.
If you haven’t used your caps in the previous financial years, you can bring those forward if you meet certain conditions. We’ve seen clients popping $100K as a tax deduction because they haven’t used those caps and they meet those conditions. It’s a fantastic tool to boost wealth through super which is a low tax environment, but also saves a whole heap of tax outside of super.
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