With the Albanese government now having a clear majority in Parliament, the proposed superannuation earnings tax from 1 July 2025 is fast becoming a reality.
Any member of a self-managed superannuation fund with an account balance above or nearing $3 million should now consider the implications. This will necessarily include consideration not only of the direct impact of the tax, but also whether it is viable from both a tax, duty and succession planning perspective to transfer investments to a new structure. How do other structures such as private investment companies and discretionary trusts compare?
Daniel Marateo, of our Tax & Revenue and Superannuation groups, published a detailed article on the workings of this proposed law with The Tax Institute in April 2024 when the legislation was originally introduced to Parliament. The article addresses various anomalous outcomes, planning opportunities and structuring issues. We expect many SMSF members and their advisers would find this of interest – see link below.
This publication has been prepared for general guidance on matters of interest only and does not constitute professional legal advice. You should not act upon the information contained in this publication without obtaining specific professional legal advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication and to the extent permitted by law, Cowell Clarke does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting or refraining to act in relation on the information contained in this publication or for any decision based on it.