Smart Super Strategy: How We Helped a Couple Save Thousands in Future Tax for Their Kids

As financial advisers, we’re always looking for ways to maximise wealth—not just during retirement, but across generations. In a recent smart super strategy we developed for clients in their mid-sixties, we were able to significantly reduce the future tax their adult children would pay on inherited super by using a smart recontribution strategy.

Here’s how our smart super strategy worked.

Our clients had built up healthy superannuation balances in their industry super funds. With retirement already underway, the time had come to convert their accumulation accounts to Account Based Pensions to begin drawing income.

Bring-forward Rule

But instead of stopping there, we implemented a strategy to “wash out” the taxable component within their super balances. This involved withdrawing a portion of their super (which included taxable components) and then recontributing those funds back in as non-concessional contributions.

Because they were both eligible, we triggered the bring-forward rule, allowing each of them to contribute up to $360,000 as a non-concessional contribution. This allowed us to move a large amount of money from the taxable component to the tax-free component of super.

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Why does this matter?

If left untouched, super balances paid to adult, financially independent children upon death can attract up to 15% tax plus Medicare levy. By shifting as much of the balance as possible into the tax-free component, we’ve effectively reduced or even eliminated this future tax burden.

The Smart Super Strategy Result?
Peace of mind for the couple knowing that more of their hard-earned savings will go to their family—not the tax office.

If you’re approaching retirement or already retired, and want to know if a recontribution strategy could work for you, we’d love to help.

📞 Book a Financial Health Check to explore your options and optimise your legacy..

5 Things NOT to Do Leading Up to Retirement

Lastly, before you retire there are 5 Things NOT to Do Leading Up to Retirement (And What to Do Instead)

Retirement is a major milestone in life and wanting to prepare in the right way in the form of a smart super strategy is essential along with these 5 ‘Do Nots’. Read them here

⚠️ What you DON’T do before retirement can matter just as much as what you do.
In fact, a few common missteps in the final stretch can make the difference between a peaceful, prosperous retirement… and a stressful one.

If we were sitting down over coffee chatting about it (which I’d love, by the way!), there’s some key strategies I’d make sure you know. The future is filled with opportunities, and with the right financial strategy, and calculated choices, you can create a long, fulfilling, and wealthy life for both you and future generations.

Planning, knowledge and action is power! 🚀💪

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Arthur Panagis
Author, Founder, Wealth Coach and Financial Strategist

B.Bus (Accounting)
Grad Dip (Financial Planning)
Professional Certificate in Self Managed Super Funds
ASX Listed Equities Accreditation
Tax (financial) Advisor

REMEMBER, action is power!
💪 We want to make the rest of your life the best of your life.