Some simple strategies can be implemented before 1st July 2017 to maximise super benefits with minimal tax under the new proposals.

1. Re-balancing super accounts between members
Typically, a husband (assuming he has retired or reached 65) may have a higher super balance than his wife, can withdraw a larger sum from his super tax-free and re-contribute back into his wife’s super as a non-concessional contribution.

2. Spouse super splitting
Up to 85% of yearly concessional contributions can be passed to your spouse’s super account.

3. Segregation of super assets
Growth assets, such as property and shares, can be placed in a pension account up to the level of $1.6m and the remainder left in the accumulation account. These assets can keep on growing over time and exceed the $1.6m level whilst its earnings remaining tax-free.

4. Sell some super assets
If you already have well in excess of $1.6m in the pension account, then you may consider selling some assets CGT free before 30th June 2017. 
As you can see, the super changes present new challenges for those who have too much in super already. However, not all is lost as we still believe that having your investments within super will lead to better tax outcomes than having those investments outside super.

 

Disclaimer
The information that we have provided to you is factual in nature and objectively ascertainable and, therefore, does not constitute financial product advice. Importantly, the factual information that has been supplied does not take into account your personal circumstances, objectives or goals. If you require personal advice in relation to your specific financial circumstances you should consult an appropriately qualified financial adviser with an Australian financial services licence.