For many years, self-managed super funds (SMSFs) have been the natural home for long-term wealth accumulation in Australia. Their combination of control, flexibility and favourable tax treatment has made them the preferred structure for many investors building wealth over time.
However, the introduction of Division 296 has prompted a reassessment of one of the assumptions that has underpinned wealth planning for decades: that superannuation will always be the most efficient place to accumulate and hold capital.
In a recent article published in The Forge, KeyInvest Managing Director Craig Brooke explores how the proposed changes may affect higher-balance SMSF members and why structure is becoming an increasingly important consideration alongside investment strategy.
As balances move beyond the proposed thresholds, the discussion shifts from simply what assets are held to where those assets are held. Asset location, tax efficiency, liquidity and estate planning all become increasingly relevant considerations.
The article also examines the potential role investment bonds can play within long-term wealth planning strategies. While not a substitute for superannuation, investment bonds may offer certain advantages for investors seeking flexibility, tax-paid internal earnings and estate planning benefits outside the superannuation environment.
As the regulatory landscape continues to evolve, advisers and investors alike are being encouraged to revisit long-held assumptions and consider whether existing structures remain aligned with their long-term objectives.
Read the full article by KeyInvest Managing Director Craig Brooke in The Forge.
