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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?

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?

About the author

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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