Comment RECONTRIBUTION and I will send you our strategy pack

Comment RECONTRIBUTION and I will send you our strategy pack.

A recontribution strategy may be especially relevant if your super is likely to go to adult children or other adult beneficiaries who are not tax dependants.

A lump sum super death benefit paid to a spouse is generally tax free. But if there is no spouse, or both spouses have passed away, super may be paid to adult children or other beneficiaries.

If they are not death benefit dependants for tax purposes, tax may apply to the taxable component of the super death benefit. The taxed element is generally taxed at up to 17%, including the Medicare levy.

For many people, the taxable component is a significant part of super because it is commonly built through employer contributions, salary sacrifice and tax deductible contributions.

A recontribution strategy may help change the tax components of super while you are alive and eligible to access and contribute back to super. This can potentially reduce the tax paid by adult beneficiaries in the future.

This can be particularly important for widows, widowers, people without a spouse and families with more complex beneficiary arrangements.

Comment RECONTRIBUTION and I will send you our strategy pack.

General advice only. This information does not take into account your objectives, financial situation or needs. Consider whether it is appropriate for you and seek personal advice before acting. Superannuation and tax laws can change, and tax outcomes depend on individual circumstances.

Amy Lehmann is an Authorised Representative (No. 1292710) of Consortium Private Wealth Pty Ltd (AFS Licence 495401).