Reconsider super nominations

You may want to consider changing any nomination you have made for your super in the event of your death, now that new super rules apply.

New rules

From 1 July 2017, there is a limit on how much super you can transfer to ‘retirement phase’ during your lifetime, where no tax will be payable on investment earnings.

This limit is known as the ‘transfer balance cap’ and it’s $1.6 million in 2017/18. It is indexed in $100,000 increments in line with the Consumer Price Index, and it includes pensions started with your own super money, as well as those you may continue or commence as a result of someone else’s death.

Consider your death benefit options

The introduction of the transfer balance cap may warrant reviewing the death benefit nomination you have put in place for your super. This could involve:

  • Changing the people you have nominated (or the amount they would receive) in a binding death benefit nomination to manage the impact the distribution of your super could have on your beneficiary(s) transfer balance cap(s). This could be considered if your super is held in a pension or the accumulation phase.
  • Switching to a non-binding nomination. This option is also available if you are in pension or accumulation phase and could be suitable if it’s desirable to have flexibility at the time of death to determine how much of your super is paid to different beneficiaries and the form in which the benefit is paid (ie lump sum or pension).

Ask Us

We can help you decide on the strategies that work best for you – so get in touch (08) 8232 9498 and make an appointment to discuss.

 

Important information and disclaimer

This publication has been prepared by Wallis-Smith Financial Services Pty Ltd ACN 112 623 613 t/a Wallis-Smith Financial Planning, Sam Wallis-Smith & Victoria Wallis-Smith are authorised representatives of GWM Adviser Services Ltd ABN 96 002 071 749 an Australian Finanmcial Services Licensee with its registered office at 105/153 Miller Street, North Sydney NSW 2060.

Any advice in this publication is of a general nature only and has not been tailored to your personal circumstances. Accordingly, reliance should not be placed on the information contained in this document as the basis for making any financial investment, insurance or other decision. Please seek personal advice prior to acting on this information.

Information in this publication is accurate as at the date of writing (July 2017). In some cases the information has been provided to us by third parties. While it is believed the information is accurate and reliable, the accuracy of that information is not guaranteed in any way.

Opinions constitute our judgement at the time of issue and are subject to change. Neither the Licensee nor any member of the NAB Group, nor their employees or directors give any warranty of accuracy, or accept any responsibility for errors or omissions in this document.

Any general tax information provided in this publication is intended as a guide only and is based on our general understanding of taxation laws. It is not intended to be a substitute for specialised taxation advice or an assessment of your liabilities, obligations or claim entitlements that arise, or could arise, under taxation law, and we recommend you consult with a registered tax agent.