Potential tax saving

When superannuation death benefit payments are made to non-tax dependants (i.e. most adult children), tax can be payable on certain components. In the calculation of this tax, it includes the Medicare levy (currently 2%).

Without getting too technical, if this same benefit is left via a Will, the Medicare levy is not payable. Thus creating a tax saving of 2%.

There are also Centrelink reasons why certain beneficiaries might benefit from receiving a superannuation death benefit via a properly constructed Will, rather than directly from a superannuation fund.

Of course this isn’t a one size fits all issue and as usual we recommend you seek the appropriate professional advice.

111 views0 comments

Any advice on this website is general in nature and does not take into account your personal circumstances, objectives and needs. Therefore, before making a decision, you should consider the appropriateness of the advice with regard to those matters. Please see our Financial Services Guide for more information.

COMPASS financial management (A.B.N. 43 235 905 061) is an authorised representative of Charter Financial Planning Ltd, Australian Financial Services Licensee


      02 6583 2211