$3m Super Tax – Beyond the doom and gloom

  • Presentations
  • Contributions

National Conference 2024

Don’t let a new tax on super scare you off one of the best retirement savings vehicles ever invented – an SMSF.

There’s no doubt the new Div 296 tax (if implemented as planned) will make super less tax effective than it used to be for some people. But it shouldn’t stop us from making great SMSF strategies the centerpiece of retirement planning.

In this session, Meg will consider clients still accumulating super wealth but concerned about the future impact of the $3m cap. Should today’s 40-50 year olds wind back their super contributions?

For those already impacted, who want to reduce their super, she’ll explore some of the issues they should consider as they do that. Strategies such as getting the timing right for large withdrawals to maximise ECPI, increasing withdrawal rates during retirement, key decisions on where to pay the tax bill, what not to do after “negative earnings” and more.
 

Following this session you will be able to:

  • Gain a comprehensive understanding of emerging Div 296 tax changes and its impact on superannuation planning.
  • Assess the need for adjusting super contributions for various age groups, particularly those in the 40-50 age bracket, in light of the new $3m super tax.
  • Explore and analyse strategies for effective super balance management for those nearing or already at the $3m cap, focusing on withdrawal timings and tax implications.
  • Build an understanding of how market downturns might impact Div 296 tax.

The contents of this resource are taken to be correct at the time of publication.

Disclaimer: Technical Papers contain general advice only and are prepared without taking into account particular objectives, financial circumstances and needs. The information provided is not a substitute for legal, tax and financial product advice. Before making any decision based on this information, you should assess its relevance to the individual circumstances of your client. While the SMSF Association believes that the information provided is accurate, no warranty is given as to its accuracy and persons who rely on this information do so at their own risk. The information provided in this bulletin is not considered financial product advice for the purposes of the Corporations Act 2001. © SMSF Association