Division 296 is live. From 1 July, earnings on the part of your super balance above $3 million get taxed at 30%, and above $10 million the rate is 40%. The narrative is that this is a tax on rich retirees. Ben takes a 38-year-old on $400k with $600k in super, doing nothing more exotic than the standard concessional contribution, and shows them crossing $3 million at 57, three years before they can touch the money.
The episode is about what to do with that. Why 30% inside super is a worse deal than 30% in a company or an investment bond, because those structures let you get at the money. Why Siobhan asks everyone rushing into an SMSF the same one-word question.
Why a couple gets $3 million each, which makes evening up balances the strategy that matters, and how spouse contribution splitting lets you move 85% of your contributions across years before you can access super. And why Ben would rather land under the cap than over it, because there are no givebacks.
WHAT YOU'LL GET OUT OF IT
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How Division 296 actually works, and what it taxes
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The 38-year-old on a normal contribution strategy who hits $3 million before 60
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Why 30% in super is worse than 30% in a company or investment bond
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The 40% rate above $10 million, and what it says about the government's intentions
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What happens to an SMSF holding property when the balance moves
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Why the question to ask before any super strategy is what the money is for
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The $3 million per person rule, and why uneven couple balances cost you
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Spouse contribution splitting, and the withdraw-and-recontribute move you can only do after 60
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Why to aim under the cap and ramp up later
CHAPTERS
00:30 Super is boring, and the news isn't good
01:16 Division 296, live from 1 July
02:29 More money is going into super than ever
03:08 Super is still the best tax deduction going
04:12 How the extra 15% actually works
04:55 Why 30% in super is a bad deal
06:29 The spending cliff after 70
07:19 The 40% rate above $10 million
07:53 Siobhan's question for everyone rushing into an SMSF
08:46 The 38-year-old who hits $3 million at 57
10:32 How the tax gets calculated on property in an SMSF
12:00 Is your SMSF still worth it?
12:30 The caps are now indexed
13:14 Aim under the cap, not over
14:48 Div 296 doesn't make super bad
16:07 A couple gets $3 million each
17:04 Spouse contribution splitting
19:00 What an SMSF changes, and what it doesn't
19:41 Wrap: strategic, not switched off
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This podcast is for education only and doesn't take into account your personal circumstances. It's not financial advice. If you buy a financial product, read the PDS and TMD, and seek advice tailored to your situation. Ben Nash and Pivot Wealth are authorised representatives of Fish Tacos Pty Ltd, ABN 14 649 248 082, AFSL 533055.
