While there is no ‘death tax’ in Australia, there can be tax payable by your non-dependants if they receive your superannuation death benefit on your death. This tax on super death benefits applies to the taxable component of your super.
Learn more about the tax payable on your super death benefits.
One of the ways to reduce this taxable component is to implement a recontribution strategy. In a nutshell, a recontribution strategy involves withdrawing some of your super and putting it back into your super account as a non-concessional contribution because this forms part of your tax-free component. Your non-dependants do not have to pay tax on the tax-free portion of your super death benefit.
Learn more about a recontribution strategy.
This guide is for members
Get full access to our in-depth guides and tools – helping you make more informed super and retirement
Not ready to join? Create a free account to access 100+ starter guides.
-
Comprehensive guidance to super rules and strategies
-
Stay up to date with changing rules
-
Make confident decisions about growing your super
Leave a Reply
You must be logged in to post a comment.