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Home / Retirement planner / Retirement planning strategies / Q&A: How will the new $3m super threshold tax impact retirement planning?

Q&A: How will the new $3m super threshold tax impact retirement planning?

Garth McNallyGarth McNally

Important: Although this proposed measure is scheduled to begin from 1 July 2025, it is not yet law. The details below may change if legislation is amended or not passed.

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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About the author

Garth McNally
Garth McNally
Garth has worked in the Australian Superannuation industry for over 20 years with a specific focus on self-managed super funds. He provides ongoing support and training to individuals as well as to professionals working in the superannuation area, including advisers, accountants and lawyers. He is a regular contributor to industry publications and to the leading professional bodies including Chartered Accountants Australia & New Zealand (CA ANZ).
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