If you’ve got a super balance above $3 million, you’re probably pretty peeved with the proposed new tax on unrealised capital gains.
The anger has been out of this world.
Even from people who aren’t affected by it.
And so it should be because this affects everyone.
But fear not. It might never happen.
The legislation hasn’t even passed parliament yet. Albo’s tried, but so far it hasn’t been successful.
And besides …
It’s not the end of the world.
There are worse things to happen than having to pay a bit more tax. Yes, it’s unfair and arguably a slippery slope.
But you can’t do anything about it.
Besides, if you’ve got a super balance above $3 million you’re doing great.
The average balance at 65 for a couple is $774,000 so you’re going to be fine, no matter what.
The tax isn’t enormous, and it’s only paid on the portion you have above $3 million.
So, for example if your balance is $4 million, only 25% is above the $3 million threshold.
If you make a ‘paper gain’ of $200,000, you’ll be taxed on 25% of this which is $50,000.
And you’ll pay 15% on this $50,000 which is just $7,500.
Not nice, but if you’ve got $4 million in assets it’s more of a minor inconvenience.
That’s not to say it’s fair.
But life’s still going to be good.
And there are options.
A quick search online tells you that people are looking to give away sums of money to their kids now, instead of in their wills.
Some are looking to split joint super accounts into separate accounts, giving them up to $6 million before they run into this problem again.
Others still are thinking about investing in other items outside super, even a business.
And some are looking at how they can reduce it with trust structures and the like.
Or they’re just going to cut loose …
… And Spend The Money
You do what you want.
But make sure you get advice first from a licensed Financial Advisor.
Fact is, if your super balance is over $3 million, you’re stuck with this tax.
This is why my view is simple.
Make enough wealth that it won’t impact you.
It’s as simple as that.
Winding back your investments is counter-productive.
Keep going, keep investing and don’t stop, whatever you do.
Stopping or slowing down might mean avoiding a little bit more tax.
But it’ll mean a huge chunk of money you’re not getting.
And superannuation is still a brilliant vehicle to do it.
How To Grow Wealthier Using Your Super
I’m sure you know there are plenty of ways to create wealth using your superannuation.
One is to start up your own superannuation fund, and this means you can invest in different assets, including real estate.
The good news is you’re invited to spend some time on a video call with one of our team members to show you how to do this.
They’ll help determine your ability to generate passive income by investing in real estate using your superannuation fund.
They’ll map out an overview of what you should do, and when.
Show you how many properties you could invest in right now if you choose to.
And of course answer any questions you have.
There’s no cost for this either.
We do it in the hopeful expectation that if you decide to invest, you’ll ask us how we can help you.
No obligation, no pressure.
First things first.
Enter your details below, and we’ll contact you to book in a time.