Question Five (10 marks)

Bob Briggs is 43 years old and a self-employed builder and 2021 was a good year for his business. He tells you he has $300 000 in excess funds which he decides to put into his self-managed super fund (SMSF) before 30 June 2021. Bob also tells you that he has not contributed anything to this SMSF in the previous three years.

Bob has been told by a friend that he could claim $100,000 in a tax deduction (without any further taxes) for superannuation contributions and he wants to do this in his 2021 tax return. Bobs taxable income for 2021 (before his superannuation contribution) was $180,000

Required:

Advise Bob of the tax consequences of putting $300,000 into his SMSF for the year ended 30 June 2021. Show calculations and cite relevant legislation to support your answer.