Brett Evans

It's against the spirit of the, yeah, okay, get that for now.

But we highly recommend it.

You know, it's not a precursor to being deemed as tax resident.

It is an expat myth, usually purported by foreign advisors trying to get you to save into a 10-year olive man bond that charges 7% interest, sorry, 7% in fees.

No.

So if you have… What's that change?

If you have property…

So obviously as a non-resident, you don't have any Australian sourced income.

If you have property though, which is positively geared, Australian non-residents get taxed at 30% on the first dollar.

So let's say you own a property.

earning $20,000 a year, you'll pay 30% tax on that $20,000.

Or you can grab that 20 and chuck it straight into super as a concessional contribution, reduces your assessable income down to zero.

You pay zero income tax and you pay 15% contributions tax.

So you've now contributed to super and you cut your tax rate in half.

They would never do a concessional.

Well, you can, but you've got nothing to offset against, so you've just got to pay 15% contributions tax.

Yes, yes.

And we see a lot of folks doing that, unfortunately.

They make the wrong election contribution into super and they come to us, we do a statement of advice and we go, why have you been making concessional contributions for the last five years?

You don't have any Australian income.