$3m super tax will level playing field: Australia InstituteBY KARREN VERGARA | TUESDAY, 21 JAN 2025 12:30PMLaws that will double the tax on earnings of superannuation balances over $3 million, which were shelved in late 2024, will make the system fairer particularly as many are doing it tough, The Australia Institute says. Related News |
Editor's Choice
Insignia gives PE firms more time to devise deal
Bain Capital and CC Capital Partners have been granted more time to thumb through Insignia Financial's books.
DII drives life insurance disputes: APRA
Disability income insurance (DII) continues to be a bugbear for the life insurance industry and is the most highly disputed product among advised, non-advised and group insurance customers, APRA statistics show.
Mantis to distribute new micro cap offering
Mantis Funds has secured a distribution deal with Balmoral Investors, taking its micro cap strategy to market.
Div 296 must proceed to strengthen 'fairness' in superannuation: ASFA
Ahead of the federal election, the Association of Superannuation Funds of Australia (ASFA) has urged all contesting parties to consider its recommendations to "protect and strengthen" the super sector.
Products
Expert Feed
The gatekeeper fallacy: A critical analysis of financial advice regulation in Australia
The current regulatory framework for financial advice in Australia rests on a fundamental misconception that threatens both consumer protection and industry ...
How family shapes our financial futures
It doesn't take our 100+ years of collective wealth management experience to know that intergenerational wealth is a hard problem.
A tale of two conflicting PBRs
What happens if a spouse survives the death of the member but dies before payment has been made?
From red tape to results? DBFO's potential
With only around 15,480 financial advisers in the country at last count, and 800 Australians retiring every day, the profession is facing a severe shortage ...
Featured Profile
Paul Heath
CHIEF EXECUTIVE OFFICER
KODA CAPITAL PTY LTD
KODA CAPITAL PTY LTD
Koda Capital chief executive and founding partner Paul Heath grew up a stone's throw from the company's chair Steve Tucker in Perth. Their eventual collaboration gave rise to one of Australia's premier independent wealth management firms. Andrew McKean writes.
With respect, the changing of the goal posts with regards to super discourages people from using it as their retirement savings.
Those with large balances did so under the rules at the time. And when they die, a tax of up to 15% of that death benefit may be taxed when it passes to the next generation.
Adjustments to the system were made in 2017, which makes it unlikely that superannuants will have large balances in the future.
So the changes have been made to address these "concerns", however the respective think tanks and policy makers and commentators just need to wait for the members to die.
Div 296 will be the catalyst for members to transfer their wealth to the next generation, thereby either reducing or eliminating the death tax being paid in the future.