In this Australian Retirement Podcast episode, your hosts Drew Meredith, from Wattle Partners, and James O’Reilly, from Northeast Wealth tackle one of the most complex parts of Australian retirement planning: the superannuation tax system.
How many different tax rates apply to super? The answer might shock you – it’s around 20 different rates, depending on your situation!
Drew and James break down every tax that can hit your superannuation at different stages:
- Contributing to super: From the standard 15% contributions tax to Division 293’s extra 15% for high earners
- Growing your super: Investment earnings, capital gains, and the new Division 296 tax on balances above $3 million
- Accessing your super: The zero-rate sweet spot after 60, and the traps if you access it earlier
- Leaving super behind: Death benefit taxes that can hit your beneficiaries with rates up to 32%
Plus, in the opening banter, James shares stories from his Disney cruise weekend and the eye-watering cost of Oasis concert tickets. Are luxury holidays actually cheaper than camping these days?
If you like this Australian Retirement Podcast episode on super taxes, you’ll love the series. Don’t forget to subscribe for weekly shows on Apple, Spotify, YouTube or wherever you get your podcasts.
Topics covered today
- The 20 different tax rates that can apply to your superannuation
- Contributions taxes: 15%, Division 293, and excess caps
- Earnings taxes: Accumulation vs pension phase
- Non-arm’s length income (NALI) and the 45% trap
- Division 296: The new tax on super balances above $3M and $10M
- Strategies to minimise super taxes throughout your retirement journey
Grey Space Advisory – snag a $100 health check
Rask – Get Owen’s best investing research
