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Using LOC to fund a superannuation deposit - Deductible?

Discussion in 'Accounting, Tax & Legal' started by Muzza, 13th Jun, 2007.

  1. Muzza

    Muzza Active Member

    Joined:
    23rd Nov, 2006
    Posts:
    38
    Location:
    Brisbane
    If i use funds from my Line of Credit to top up my superannuation before the end of tax year, if the interest from the Line of Credit tax deductible?
     
  2. Bob

    Bob Well-Known Member

    Joined:
    16th Aug, 2005
    Posts:
    131
    super

    I wish. Sorry, but my understanding is no. The superannuation fund is not income producing. Some investors are borrowing against their properties, plonking the money into the super with the intention of selling the properties down the track...the borrowings are are not tax deductible but the advantage is that they can put in up to $1M this fiscal year in anticipation of earning more than the borrowing rate (7 or so percent)..
     
  3. Nigel Ward

    Nigel Ward Team InvestEd

    Joined:
    10th Jun, 2005
    Posts:
    1,172
    Not on the funds used for that purpose. :(