By Andrew Sherlock
The Labor Federal Government has just announced proposed changes to increase the taxation of superannuation member balances with more than $3 million to a flat rate of 30%.
For members with less than a $3 million balance there are no proposed changes.
Due to commence on 1 July 2025, there is plenty of time for us to adjust plans as needed for those affected.
While there is much to think about and keeping in mind that each person’s situation is different, my initial thoughts about some things that superannuants could consider include:
- Whether to retain super balance amounts higher than $3 million.
- The option of withdrawing funds if possible and moving them to other structures.
- Using structures such as family trusts or insurance bonds as alternatives.
- Increasing allocations to Australian equities to access additional franking credits.
- The realising of any ‘unrealised’ capital gains ahead of the proposed start date.
The team and I will be working closely with each of you ahead of the proposed change start date to ensure your financial strategies are adjusted accordingly.
As always, we’re here to help, so reach out to the Sherlock Wealth team here.
Andrew Sherlock is the Owner & Head of Advice at Sherlock Wealth.
A Sydney-based financial planning firm, Sherlock Wealth has been helping successful families, business owners and individuals with their wealth creation and wealth protection needs for more than two generations.
A Chartered Accountant with a background in funds management, Andrew’s career spans more than 30 years. Andrew was one of the first people in Australia to obtain the Self-Managed Superannuation Specialist accreditation and is one of only a few advisers in Australia to be a Certified Investment Management Analyst. He is a lifetime member of the international MDRT Top of the Table and holds a BA Economics degree from Macquarie University with majors in accounting and finance.
Helping clients achieve their lifestyle goals through smart investing and asset management, wealth structures, and strategic planning are the cornerstones of what Andrew and the team at Sherlock Wealth provide.
Andrew can also be contacted at ask@sherlockwealth.com.
