Monthly Musings

In this “Monthly Musings” for the month of June we will provide a Market & Economic Conditions Update, release a brand new episode of our short video series 3 Minute Tech titled “What are the tax consequences when inheriting Super?”, look back at an important insight in our Focal Point section on “Binding Death Benefit Nominations”, and showcase a brand new episode of our “Finding the Front” podcast featuring special guest and one of Australia’s most influential mining leaders, Jake Klein, Executive Chair of Evolution Mining.

Spouse Contributions

A spouse contribution, when related to a contribution tax offset, is a way to boost a spouse’s super whilst managing tax. These contributions can also help address situations where one partner may have a lower super balance due to leave or reduced working hours.

Episode 44: EOFY – What you need to know!

Episode 43: What are the tax consequences when inheriting Super?

Episode 42: What happens to your Super on death?

General Transfer Balance Cap – Increase to $2 million

The maximum balance a superannuation member can move into the tax-free retirement (pension) phase is presently $1.9 million. This is due to a limit introduced in 2017 known as the Transfer Balance Cap (TBC). Indexation of the general TBC to $2 million will occur on 1 July 2025. We explore some of the implications below.

Testamentary Trusts

A testamentary trust is a type of trust that is created through a person’s Will and takes effect upon death. Depending on your financial circumstances, this structure can provide the beneficiaries certain advantages in addition to an inheritance

Episode 41: Your Questions Answered

Transition to Retirement Income Streams (TRIS) 

Due to changes implemented in 2017 to limit the tax benefits of a transition to retirement pension, this strategy has received less attention in recent years. However, it remains a strategy that can assist those who have reached their ‘preservation age’ to have access to superannuation benefits without the requirement to leave a job or fully retire. Furthermore, a transition to retirement strategy can be used to manage ongoing cash flow, or to assist in executing extra tax-effective contributions to superannuation in the lead up to retirement.

Commonwealth Seniors Health Card

The Commonwealth Seniors Health Card (CSHC) is a federal government concession for self-funded retirees, allowing access to cheaper health care and other discounts. The card is income tested and valid for a 2 year period once granted.