Article written by Sarah Davie
Associate Director & Licensed SMSF Accountant
Steps to review your position under $3 million super tax
For many Australians, the proposed $3 million super tax may not require immediate changes to their financial arrangements. However, individuals with higher superannuation balances should take the time to carefully review their current position, future investment growth and broader wealth structure to understand how the proposed changes may affect their long-term retirement strategy.
Step 1 – Check Your Total Super Balance
Your Total Super Balance includes all of your superannuation interests across different funds, including SMSFs, retail funds and industry super funds. Understanding your complete balance is an important first step, as many individuals may hold multiple super accounts and investments that contribute toward the proposed threshold. Reviewing your balance regularly can help you stay informed and prepared for future tax implications.
Step 2 – Review Future Growth
Even if your current super balance is below the $3 million threshold, future investment growth may result in your balance exceeding this level over time. Strong market performance, property growth, additional contributions and compounding investment returns can all significantly increase your super balance. Considering future projections can help you better understand whether adjustments to your investment or contribution strategy may be necessary.
Step 3 – Review Your Broader Wealth Structure
It may be beneficial to review how your overall wealth and investments are structured. Assets can be held across superannuation, trusts, companies or personal ownership, and each structure may have different tax outcomes and strategic advantages. Reviewing your broader financial position can help ensure your wealth strategy remains aligned with your long-term goals while also considering potential tax impacts.
Step 4 – Seek Professional Advice
The proposed $3 million super tax introduces a range of complex tax and financial planning considerations that may affect high-balance superannuation members differently. Professional advice can help you understand how the changes apply to your circumstances and whether any adjustments to your retirement, investment or estate planning strategy may be appropriate. Early planning can provide greater flexibility and confidence in managing future financial outcomes.
Still got questions?
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Book a Free SMSF Strategy Session with Rogerson Kenny’s SMSF specialists today.
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*Disclaimer: This article is general information only and does not take into account your personal circumstances. Always seek professional advice before making financial decisions.*
Sarah Davie is an Associate Director and Licensed SMSF Accountant at Rogerson Kenny Business Accountants. She specialises in Self-Managed Super Funds and advises trustees on compliance, strategy and superannuation legislation.
