Important: Although this proposed measure is scheduled to begin from 1 July 2025, it had not become law before 1 December 2024, and may not be passed before the 2025 Federal Election.
Q: How will the new $3 million threshold tax impact retirement planning?
A: There are lots of similar questions on this topic. First of all, I believe that SMSF liquidity and SMSF diversification will become even more important. Now, the new tax they’re talking about from 1 July 2025, the Division 296 tax, is a tax applied to the individual personally. You’re responsible individually to pay that, not the fund. But if you want your fund to pay that, which I’m thinking quite a few people will, you need to think about does the fund have sufficient cash flow, liquidity, and diversification to meet that?
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