Removal of Superannuation Work Test Under Age 75
Several key superannuation changes come into effect from July 2022. One of these is the amendment of super regulations to allow super funds to accept contributions for a member while they are under age 75 (including the period up to 28 days after the end of the month in which they turn 75), regardless of their work status.
Ted could withdraw $660,000 and re-contribute $330,000 each into new super account for both himself and Sally, using the bring forward rules.
Alternatively, they could each contribute $110,000 each in the current financial year, plus a further $330,000 in July. This would give them $440,000 of tax-free superannuation each. By eliminating $880,000 worth of taxable superannuation, they could potentially be saving their beneficiaries $132,000 in tax.Ted and Sally need to plan carefully and act before turning age 75. By delaying this strategy, they could miss a great opportunity to maximise the legacy left for future generations.
This is intended to be general advice only. Goldsborough Financial Services has not taken into account the objectives, financial circumstances or investment needs of any particular person. For specific advice on your situation please contact your Goldsborough Financial Planner.