Join our investing community

Super co-contribution

Discussion in 'Accounting, Tax & Legal' started by Sean, 22nd Jun, 2006.

  1. Sean

    Sean Member

    Joined:
    23rd Aug, 2005
    Posts:
    24
    Hi all,
    Just a quicky. I was thinking of dumping 1k into my wifes Super before eofy just to get the co-contribution. She usually makes fortnightly contributions but she changed jobs this year and we forgot to set it up :rolleyes: . Anyway, I was thinking about writing a cheque from our LOC.
    Question -
    Does this affect the tax deductability of the interest on the LOC? I thought not as it is still being used for investment purposes...
     
  2. Nigel Ward

    Nigel Ward Team InvestEd

    Joined:
    10th Jun, 2005
    Posts:
    1,172
    Hi Sean, "I'm not sure" is the answer. But my gut feel says no. Altho it may seem a bit odd, I don't think the ATO would agree that interest you incur on making a contribution to your wife's super is a use to earn YOU assessable income - thus not deductible.

    I'm not sure if NickM is around atm to answer...but we'll try to dig up an answer soon.

    Cheers
    N.
     
  3. Francesco

    Francesco New Member

    Joined:
    20th Jun, 2006
    Posts:
    1
    Location:
    Canberra
    There is no tax deduction for loan used to 'invest' in superannuation. I am sure of this position and a quick call to ATO should confirm this. :)