Do you have adult children? Do you have your Life Insurance within superannuation?
If you answer yes to both of these questions, and your kids will be beneficiaries of your fund, they may be making friends with the Tax department upon receipt.
When your superannuation is paid to your ‘non-dependent’ children, (meaning they are grown up and not relying on you to support them as children)the funds are taxed at 15%.
The rules change slightly when insurance is thrown into the mix from your super fund. Once your life cover is paid to a non-dependent, it is taxed at 31.5%! This is something that now needs to be taken into account if you only have enough cover to pay your mortgage or outstanding debts.
Contact Us now to arrange advice on how you can secure the correct funds for your family’s future on 1800 674 435.