Page 3 - Wealth-Adviser-Issue-113 (FWP)

ISSUE 113
JUNE 2025

game-changer for individuals returning to work, experienc- superannuation tax changes, and it is essential to consult
ing a windfall, or simply wanting to boost their retirement these resources to ensure that your planning remains
savings. current and compliant (ATO, 2024).
Government Co-contributions are another opportunity
for low and middle-income earners. If you make a non-con- Risk Management, Insurance, and Estate
cessional contribution, you may be eligible for a government Planning
co-contribution of up to $500, provided you meet the Superannuation is not just about accumulation; it is also
income and eligibility criteria outlined by the ATO (ATO, about protection and legacy. Reviewing your insurance and
2023). estate planning arrangements is a key part of EOFY super
planning.
Tax Efficiency, Compliance, and Superannuation Insurance Review: Superannuation funds often pro-
Effective superannuation planning is not just about vide life insurance, total and permanent disability (TPD)
maximising contributions; it is also about ensuring that insurance, and income protection. The Morningstar article
your approach is tax-efficient and compliant with current stresses: “Review your insurance arrangements… ensure
regulations. you have adequate cover for your needs.” This is especially
Tax Planning is a central consideration. Making addition- important as life circumstances change—such as buying a
al concessional contributions can reduce your taxable in- home, starting a family, or changing jobs.
come, potentially lowering your tax bill. The IOOF checklist Income Protection Insurance is a key consideration
notes: “Take advantage of tax deductions for personal super for anyone reliant on their salary. Super funds often offer
contributions if you’re eligible.” This is particularly relevant income protection insurance, which can provide a monthly
for self-employed individuals or those with irregular income benefit if you are unable to work due to illness or injury.
streams. Reviewing your level of cover and comparing it to your
Salary Sacrifice Arrangements can be a highly effective needs is essential.
way to reduce your taxable income. By arranging with your TPD and Life Insurance can provide financial security for
employer to redirect part of your pre-tax salary into your you and your family in the event of serious illness or death.
super fund, you can take advantage of the lower tax rate on The Morningstar article emphasises the importance of
super contributions. ensuring you have adequate cover for your current circum-
Tax Deductions for Personal Contributions are available stances.
if you are self-employed or not receiving employer contri- Cyber Security: With the rise of digital financial services,
butions. This requires lodging a notice of intent to claim a protecting your personal information is more important
deduction with your super fund and ensuring the contribu- than ever. Regularly updating passwords, enabling two-fac-
tion is received before June 30. tor authentication, and monitoring your accounts for sus-
For those with self-managed super funds (SMSFs), the picious activity are simple but effective steps to safeguard
Morningstar article advises: “Check your capital gains tax your superannuation.
position and review asset valuations for SMSFs.” This is Estate Planning: Superannuation does not automatically
crucial for ensuring that any capital gains are accurately form part of your estate, so it is important to make a binding
reported and that the fund remains compliant with ATO death benefit nomination to ensure your super benefits are
requirements. paid according to your wishes. The IOOF checklist recom-
Capital Gains Tax (CGT) Strategies are important for mends: “Update your estate plans, wills, and insurance
SMSF members. Timing the sale of assets to realise cap- policies regularly.” This includes considering reversionary
ital gains or losses can have significant tax implications. pensions and the role of super in your overall estate plan.
Reviewing your CGT position and asset valuations can help Binding Death Benefit Nominations: A binding death
optimise your tax outcome. benefit nomination ensures your super benefits are paid to
Compliance is another critical area. The introduction of your chosen beneficiaries. Without this, the trustee of your
the new Division 296 tax for superannuation balances over super fund may decide how your benefits are distributed.
$3 million means that high-balance members need to be Reversionary Pensions: If you are receiving a pension
especially vigilant. The Morningstar article explains: “From from your super, a reversionary pension can provide ongo-
1 July 2025, an additional tax of 15% will apply to earnings ing income to your spouse or dependant after your death.
on superannuation balances above $3 million.” This change This can be a valuable part of your estate planning strategy.
underscores the importance of staying informed about legis- Wills and Powers of Attorney: While superannuation
lative updates and adjusting your strategies accordingly. is separate from your will, it is important to ensure your
The ATO regularly updates its guidance on overall estate plan is up to date. This includes having a valid

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