Press Release

Australian investors are rushing to cash in their properties in a bid to invest up to $1 million of personal after tax contributions into their superannuation.

Millions of dollars worth of residential real estate is being sold across Australia by investors hoping to top up their superannuation funds ahead of the introduction of the new, super regulations.

The Federal Government is allowing investors to make one-off undeducted contributions of up to $1 million before the new rules are enforced from July 1.

The changes have led to a surge in popularity of self-managed super funds, says leading self-managed funds specialists Super Concepts.

"Since the new super regulations were announced last year, we have noticed an increase in the number of enquiries from the public about SMSFs," said Super Concepts national sales and marketing manager Justin Sadler.

"Many investors are disposing of their properties and other assets or utilising in-specie transfers, so they can take advantage of the current superannuation tax arrangements before they expire on July 1."

According to the Australian Tax Office (ATO), applications for SMSFs have risen by 30 per cent so far this financial year.

"SMSFs are a fantastic way to control your assets, and in turn your financial future," said Super Concepts national sales and marketing manager Justin Sadler.

"They do require time and commitment, though, and investors should always ensure they seek advice of a professional for guidance.

"Super Concepts is unique as its only business is self-managed funds. We are experts in our field and our services are used not only by individuals, but by accountants, financial planners and stockbrokers around Australia."

For investors who did not wish to sell their property before the July 1 deadline, a SMSF was an ideal vehicle for in-specie contributions, Mr Sadler said.

"In-specie contributions mean that certain assets such as shares and commerical property can be transferred to a super fund in lieu of a cash contribution, however clients need to be mindful of the transfer issues such as tax, CGT and stamp duty" Mr Sadler said.

"SMSFs are not only cost-effective, but also very flexible."

Under the new super regulations, the tax-free threshold will revert to $150,000 from July 1. Individuals will be limited to investments totalling $150,000 a year or a maximum of $450,000 within a three-year period.

In addition, income recieved from a superannuation fund will be tax-free once an individual reaches the age of 60.

END.