One of TSP’s long term clients, aged 65 and retired, came to TSP for some advice relating to the sale of an investment property.  

The property had been owned for over 10 years with capital gains tax required upon its sale.

TSP immediately conducted several calculations with the findings of a significant capital gain on the property pushing the client into the top rates of tax in this particular instance, some taxed at 39% and the rest at 47%! 

The team set out to investigate any available deductions to reduce the client’s liability and found a potential option in the utilisation of personal superannuation contributions

TSP determined the client’s super balance as at 1 July 2021 was $400,000, without making any super contributions for the 2019, 2020, 2021 or 2022 financial years. The client was advised to use the carry forward unused concessional contributions rule to facilitate contributions to their super of $102,500 of the sale proceeds and claim a tax deduction, thereby reducing the capital gain. 

Enabling this rule, essentially converted $102,500 of the capital gain from the 47% and 39% tax rates to 15% payable in the super environment, saving the client $30,000 in capital gains tax!  

As the client is retired and has reached the preservation age, they were able to immediately access the super contribution in the form of a tax free pension.

This case study is another  example of TSP Accountants assisting our clients with optimising their financial future not only doing their taxes.  Our team has the extended knowledge of all the available options and the capability to provide real solutions. Get in touch to have a chat about your circumstances on 49 264155 or email