Can this investment help avoid the new $3m super tax?
A reader is trying to find ways to dodge an extra 15 per cent charge from July 1, 2025.
Q: I am a self-funded retiree in my late 70s with a super balance attracting extra tax from July 2025. I’m wondering whether I could purchase annuities from my SMSF to reduce or eliminate extra tax, and still draw income from the fund. Are there any other alternatives when the new tax on super earnings is introduced? Jay.
A: When considering your question, one important distinction must be made at the outset. While a self-managed super fund can own annuities in its portfolio, this only applies to fixed-term annuities and not lifetime annuities.
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