Question: To clarify, if over 50, you can only contribute a maximum of $35,000 this year to your SMSF. The existing ‘catch up’ of $180,000 pa for 3 years is not available for this year? Please also confirm that an ‘in specie’ transfer of shares from your personal name into your SMSF is treated as part of this cap. It will trigger a CGT event and if further down the track if sold within the SMSF CGT would be payable again? Thanks for your clarification on these points.

Answer (by Paul Rickard): The $30,000/$35,000 refers to concessional contributions – an employer’s 9.5%, salary sacrifice amounts, or if self-employed, the amount you contribute and claim as a tax deduction for. It is available this year and in 2016/17.

The $180,000 is for non-concessional contribution – your own after tax money. The bring forward rule (3 years of $180,000 or up to $540,000) is available – but will put you over the Government’s foreshowed lifetime cap of $500,000.

An in specie transfer would be a personal after tax contribution and count against your non-concessional cap. It will also be a disposal for CGT purposes, and if sold down the track within the SMSF, tax on the gain may be payable (will depend on whether the fund is in accumulation or pension phase).

Question: Do you consider any of the big banks to be a good investment for long term? I was looking at buying some ANZ.

Answer (by Paul Rickard): I think all the major banks are good investments for the long term. Post Brexit, they are obviously a lot cheaper.

The headwinds include extra capital, higher credit losses and low income growth – but that’s why they have come off in price. Going forward, there is no doubt that the return on equity is going to fall, and dividends may be a little lower.

Momentum and market sentiment is still negative, but if your patient, I think over the long term you will do ok.

Which bank? I don’t think that there is that much difference between the 4 after you adjusting for pricing multiples. I quite like the look of ANZ – and thought the recent strategy changes and half year results were positive developments. The brokers are also reasonably indifferent. According to FN Arena, current target prices and sentiment, the latter on a scale of -1.0 being most negative to +1.0 most positive, is as follows:

• ANZ, +0.2, $26.70
• CBA + 0.3. $78.53
• NAB, +0.1, $28.56
• WBC, +0.8, $32.70

Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.