We have received many questions from readers about how the new $1.6 million transfer balance cap will operate when a fund member dies, especially if the fund member has arranged for his or her spouse to receive a superannuation death benefit pension, including a reversionary pension. This article provides a brief ... Read more
Superannuation strategies
Superannuation strategies can be any super-related action that can help an individual grow his or her benefit. Such action can include strategies that protect existing super benefits, minimise costs, help boost your super savings by making extra super contributions, or by actively selecting your super account’s selection options.
If you run an SMSF, then you may be considering SMSF-specific strategies in relation to administering your SMSF, or investing your super monies, or running an SMSF pension.
All Australians contemplating retirement, at some stage will be considering retirement strategies such as deciding on the right age to retire, working out how much money will be needed for a life in retirement, whether they will be eligible for the Age Pension, and deciding who gets their super savings after they leave this earth.
For more information on important superannuation strategies, refer to the links below:
- Housekeeping strategies (such as reporting your tax file number, choosing a super fund, checking fees, nominating beneficiaries)
- Contributions strategies (such as salary sacrificing, spouse contributions, non-concessional contributions, co-contributions, capital gains tax management)
- Investment strategies (such as choosing an investment option, asset allocation, shares that pay franked dividends
- Age-based strategies (such as making super contributions, accessing super, timing retirement)
- Retirement strategies (such as how much super is enough, lump sums, super pensions, Age Pension, work test)
- SuperGuide checklists
The following SuperGuide articles provide examples of superannuation strategies:
Set out below are all SuperGuide articles referring to Superannuation strategies.
Non-concessional contributions: Re-contribution strategy still applies
Q: My wife turns 60 this financial year and it has always been my intention to cash out her portion of our small self-managed super fund (SMSF) and re-contribute it straight back in, so as to ensure that when she and I pass away, our children are not hit by tax. Is that still a valid strategy and if so, am I correct in ... Read more
Superannuation death benefits: Who receives super payments, and how much tax is paid?
On the death of a super fund member, a superannuation death benefit can be paid to the dependants of the fund member, or to the fund member’s estate. The term ‘dependant’ has two special meanings when referring to superannuation death benefits. A super fund can only directly pay a superannuation death benefit to ... Read more
Superannuation death benefits: Beware the dastardly death tax, and retirement cap
Although superannuation death benefits are tax-free when paid to individuals who are ‘dependants under the tax laws’, a ‘death tax’ continues to apply when super monies are paid to individuals who are ‘dependants under the super laws’ BUT are ‘non-dependants under the tax laws’. Dependants under the super laws can ... Read more
Beyond the Royal Commission: 10 super strategies to protect your retirement
I am waiting for the final report of the Financial Services Royal Commission before I fully express what I think about the behaviour of the financial services industry as a whole, including the superannuation industry. Apart from the apparent incompetence and dishonesty of some players in the financial services sector, ... Read more
Ten years on: Four lessons from the GFC (Grab-For-Cash)
Note: A version of this article was first published in 2009, in Trish Power’s book, DIY Super for Dummies (Wiley), and republished in 2015. I was holidaying in Europe when the Global Financial Crisis (GFC) officially hit in October 2008 (although investment markets had been falling dramatically since December 2007). ... Read more
For over-65s: Ten tips when making super contributions
Australians can make voluntary superannuation contributions up to the age of 74 (that is, before you turn 75), and these super contributions can be concessional (before-tax) or non-concessional (after-tax) contributions. If you’re aged 65 or over however, then you must satisfy a work test, if you intend to make super ... Read more
Capital gains: Reducing income tax via super contributions
Q: I have a self-managed super fund (SMSF), and I also have two investment properties in my personal name. When I sell the properties, I will be required to pay capital gains tax. Can this capital gains tax be offset by a contribution to the SMSF which would be tax-deductible? Would there be a 15% contributions tax? I ... Read more
What are the super and retirement rules for over-65s?
Q: My wife (age 63) and myself (age 65) were told by a financial organisation that at 65 or over I could put money into super, pay 15% tax on the way in, and then draw it out when I wished and pay no tax. In fact, I have been told to pay myself $30,000 or less and source the rest of my income through my super fund. My ... Read more
Want investments that help you sleep? Understand your risk profile
Everyone is different and when it comes to investing, some people find themselves tossing and turning in bed, while others sleep easy. As an investor or super fund member, the key to getting a good night’s rest is to pick the investments (or investment options in your super fund) that match your personal risk ... Read more
SMSF advice: Is your accountant still allowed to help your fund?
Being the trustee of a self-managed super fund can be a challenging task at times, and most people need a bit of help at certain stages when running an SMSF, particularly when a decision, or strategy, requires financial advice. Traditionally, many Australians have turned to their accountant for assistance, but under ... Read more
Latest superannuation rules: 2018/2019 guide
Substantial changes to the superannuation rules took effect from 1 July 2017, and further super changes took effect from 1 July 2018. Have you investigated how the super changes will affect your superannuation and retirement plans for the 2018/2019 year, and for future financial years? At the same time, many of ... Read more
