(Super + Wrap + Retirement Planning)
The Budget has fundamentally changed the tax landscape.
The new reality is simple:
Superannuation is now the most tax‑efficient place to hold long‑term investments.
Personal‑name investing becomes significantly less tax‑efficient.
Here is the optimal, high‑level strategy framework for clients approaching retirement.
✅ 1. Maximise Superannuation Contributions (While You Still Can)
Super is now the clear winner because:
- CGT discount removal does not apply inside super
- Earnings taxed at 15% (accumulation)
- CGT taxed at 10% for assets held >12 months
- Pension phase remains 0% tax
- No 30% minimum CGT tax
- No negative gearing restrictions inside super
- No trust minimum tax rules
Most tax‑effective moves:
- Use concessional contributions up to the maximum cap
- Use carry‑forward concessional contributions (up to 5 years unused)
- Use non‑concessional contributions if eligible
- Consider downsizer contributions for clients 55+
- Consider a Transition to Retirement (TTR) strategy for clients 59–64
Every dollar moved from a wrap account into super is a dollar shielded from the new CGT regime.
✅ 4. Bring Forward Asset Sales BEFORE 1 July 2027
For clients with large unrealised gains in wrap accounts:
- Selling before 1 July 2027 preserves the 50% CGT discount
- Selling after that date means no discount + 30% minimum tax
This is a major planning opportunity for:
- Long‑held shares
- Legacy managed funds
- Large wrap portfolios
- Pre‑CGT assets (gains after 2027 become taxable)
✅ 5. Re‑Evaluate Property Strategy
Negative gearing is now:
- Restricted to new builds only
- Removed for established property purchased after 12 May 2026
- Losses can only offset property income, not wages
Implications:
- Established property becomes less attractive
- New builds become relatively more attractive
- Many clients will shift capital from property → super and shares
✅ 6. Start or Increase Pension Phase Earlier
Once a client moves to pension phase:
- 0% tax on earnings
- 0% CGT
- 0% tax on withdrawals
This is now the single most powerful tax shelter available.
Best timing:
- Age 60+
- Retired or meeting a condition of release
- Or using a TTR pension (59–64)
⭐ THE SIMPLE SUMMARY FOR CLIENTS
Most tax‑effective going forward:
- Superannuation (accumulation + pension)
- Growth assets held inside super
- Low‑turnover equity strategies
- New residential property
- Income assets in wrap accounts
- Companies (25% tax for small companies) for some business owners
Least tax‑effective going forward:
- Growth assets held in personal names
- Established residential property
- Discretionary trusts (30% minimum tax)
- Pre‑CGT assets (post‑2027 gains taxable)
⭐ THE BEST OVERALL STRATEGY FOR NEAR‑RETIREES
Move as much of the long‑term investment portfolio into super as possible,
hold growth assets inside super, hold income assets in wrap,
and transition to pension phase as soon as eligible.
This is the most tax‑effective structure under the new rules.
CM
Disclaimer
This information is general in nature and based on Budget announcements and publicly available details as at this stage. Measures may change as legislation progresses. This does not take into account your personal objectives, financial situation, or needs and should not be relied upon as financial advice. You should consider seeking advice from a qualified financial adviser “preferably Intech” before making any decisions.
