Not sure? Well, it seems neither is the ATO.
The ATO commented that “There are no inheritance or estate taxes in Australia” (ATO 18.08.16) and then, “Super law sets out who a death benefit is payable to and taxation law sets out how the benefits will be taxed” (ATO 16/03/18)
Sound a bit contradictory? We agree.
There is both good and bad news in relation to your superannuation and tax.
Bad news – there definitely is a chance your super will be taxed when you die, and this tax could be as high as 30%.
Good news – by taking the appropriate steps and by knowing what to do and when to do it, you can avoid and/or minimise this tax.
Effective Estate Planning is a key element in minimising how much the tax man gets out of your estate. If you have a sizable superannuation balance (as a lot of people do) then we’d strongly recommend you give estate planning some consideration.
We can advise you on some simple steps you can take to reduce the chance of letting the tax man be a beneficiary of your estate.
Call us today to arrange an obligation free discussion with one of our super and estate planning specialists.