Super Strategy Shifts Ahead of Budget Day | the Advisory

Why It Matters

Strategic timing around the budget can safeguard tax benefits and retirement savings for SMSF investors.

Key Takeaways

• Do not panic; budget changes may affect CGT and super
• Check if CGT reforms target personal assets, super assets, or both
• Consider splitting large share sales before and after budget announcement
• Delay pension phase start until July 1 to avoid double revaluation
• Spousal contributions allowed, but each share parcel must be allocated separately

Summary

The advisory episode focuses on how the imminent federal budget could reshape strategies for self‑managed super funds (SMSFs). Host and Sonus Wealth’s Liam Short warn listeners not to overreact while the government finalises capital‑gains‑tax (CGT) reforms and other super‑annuation measures.

They outline the key variables investors must watch: whether CGT changes apply only to personal assets or also to assets held in super, the potential reduction of the personal CGT discount versus retention of the super discount, and the upcoming increase of the pension transfer‑balance cap from $2.0 million to $2.1 million on 1 July. They also remind contributors that unused concessional space from the 2021‑22 year will be lost after 30 June.

Short gives concrete tactics – split large share disposals 50 % before and 50 % after the budget, postpone pension phase entry until July 1 to avoid a double asset revaluation, and ensure spousal contributions are allocated as separate parcels at entry. He also cautions against exceeding the $30,000 non‑concessional cap by assuming employer contributions will stay below the limit.

The advice underscores that timing and precise allocation can preserve tax deductions, protect retirement balances, and prevent costly administrative work. SMSF owners who act strategically around the budget deadline stand to maximise their caps and avoid unintended tax liabilities.

Original Description

Liam Shorte from SONAS Wealth sets out a measured view on potential Federal Budget changes to capital gains tax and their impact on SMSFs. Shorte urges SMSF trustees not to rush into asset sales ahead of Budget night, arguing that details such as whether any CGT change applies to personal assets only, or also to superannuation, are critical. In his view, a reduced personal CGT discount with unchanged super tax rules would make holding growth assets in super more attractive, while any return to indexation could tilt the balance towards personal ownership, depending on inflation.

On the $2 million transfer balance cap, Shorte notes it is scheduled to rise to $2.1 million from 1 July. He suggests those turning 65 in May or June consider delaying starting a pension until the new financial year to access the higher cap and avoid duplicating asset revaluations and accounts. He also prefers delaying notices of intent to claim deductions until after 30 June, to confirm employer contributions and avoid breaching the $30,000 concessional limit.

Shorte highlights the rolling five‑year concessional catch‑up rules for balances under $500,000 and explains how in‑specie contributions of shares in companies such as Macquarie Group (ASX:MQG), AMP (ASX:AMP) and National Australia Bank (ASX:NAB) can be used to build a spouse’s SMSF balance.