#525 How Much Super Is Too Much?

Division 296 is live. From 1 July, earnings on the part of your super balance above $3 million get taxed at 30%, and above $10 million the rate is 40%. The narrative is that this is a tax on rich retirees. Ben takes a 38-year-old on $400k with $600k in super, doing nothing more exotic than the standard concessional contribution, and shows them crossing $3 million at 57, three years before they can touch the money.

The episode is about what to do with that. Why 30% inside super is a worse deal than 30% in a company or an investment bond, because those structures let you get at the money. Why Siobhan asks everyone rushing into an SMSF the same one-word question.

Why a couple gets $3 million each, which makes evening up balances the strategy that matters, and how spouse contribution splitting lets you move 85% of your contributions across years before you can access super. And why Ben would rather land under the cap than over it, because there are no givebacks.

WHAT YOU'LL GET OUT OF IT

How Division 296 actually works, and what it taxes

The 38-year-old on a normal contribution strategy who hits $3 million before 60

Why 30% in super is worse than 30% in a company or investment bond

The 40% rate above $10 million, and what it says about the government's intentions

What happens to an SMSF holding property when the balance moves

Why the question to ask before any super strategy is what the money is for

The $3 million per person rule, and why uneven couple balances cost you

Spouse contribution splitting, and the withdraw-and-recontribute move you can only do after 60