Page 11 - Wealth-Adviser-Issue-118 (FWP)

ISSUE 118
AUGUST 2025
Ask a any job that you’re reasonably qualified for, based on your

education, training, or experience. This means that even if
Q&A: Question you’re unable to do your specific job, you may still be able to
receive a payout if you can perform other work. It’s general-
ly a more affordable option but comes with a higher risk of
Question 1: claims being denied if you can still do any work.
How much can I add to my super before retirement under On the other hand, own occupation insurance provides
the latest concessional caps? coverage if you’re unable to perform your specific pre-dis-
The concessional contributions cap for this financial year ability job, regardless of whether you can do another role.
is $30,000 and this applies to all concessional (before-tax) This type of insurance tends to be more expensive but offers
contributions, such as employer contributions (Super greater protection, particularly for individuals with special-
Guarantee) and salary sacrifice. If you haven’t fully utilised ised careers. Both options are available within personal and
your concessional cap in previous years, you can carry for- superannuation insurance policies and choosing the right one
ward any unused cap amounts for up to five years, provided depends on your career, financial goals, and risk tolerance.
your super balance was less than $500,000 as of June 30 in A financial adviser can guide you through these consider-
the previous financial year. Keep in mind, concessional con- ations and help tailor a plan suited to your needs.
tributions are taxed at 15% within your super fund, which is
generally lower than personal income tax rates. Question 3:
You can also make non-concessional contributions which How is capital gains tax (CGT) treated for investments in
are after-tax contributions. The cap for NCCs is $120,000 per superannuation?
year, or up to $360,000 using the three-year bring-forward Capital gains tax (CGT) within superannuation is typi-
rule, depending on your total super balance cally taxed at 15%, but the application varies depending on
However, if your total super balance exceeds $2 million, the type of super fund you hold. In a master trust or pooled
your ability to make non-concessional contributions (af- trust structure, CGT is often reflected in the unit price of
ter-tax contributions) may be limited. To maximise your con- the fund. This means that the fund itself takes care of any
tributions in a tax-effective manner, it’s a good idea to speak realised capital gains, and the tax impact is embedded
with a financial adviser who can help you take full advantage within the unit price. You do not have direct control over
of these caps and structure your super contributions. when gains are realised.
On the other hand, in a wrap account, CGT is only
Question 2: triggered when you sell specific assets held within the ac-
What is the difference between “any occupation” and “own count. This allows you to manage the timing of CGT events,
occupation” insurance options? potentially giving you more flexibility to manage your tax
The key difference between “any occupation” and “own situation. However, this comes with the need for more
occupation” insurance lies in the level of coverage and the active management and potentially higher fees.
conditions under which benefits are paid out. Any occu- A financial adviser can help you choose the right super-
pation insurance covers you if you’re unable to perform annuation strategy to optimise your tax position.

Future Wealth Planners

Level 1, 176 Main Street
Osborne Park WA 6017

P.O. Box 16
Osborne Park WA 6917

P: 08 9207 3844
W: www.fwplanners.com.au
E: clientservices@fwplanners.com.au

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