HLB Mann Judd urges 'de-facto duty' review
|
| Michael Hutton
|
HLB Mann Judd urges a review of life insurance held in superannuation, particularly the so-called ‘de-facto duty’ levied on payouts to non-dependents.
Head of wealth management Michael Hutton said not enough consideration is given to tax implications when fund members retire.
“When a member was working, there may have been tax advantages in holding life insurance in the fund,” said Hutton.
“But there can be disadvantages to keeping it in the fund after retirement — such as payouts being taxable in the hands of non-dependants.”
Hutton said regular reviews of superannuation are important in determining whether someone is over-insured. It may be that some insurance should be cancelled, particularly if there is still a major item of debt that may affect a surviving spouse, such as a mortgage.
Hutton said financial advisers should play a key role in working with clients to review their superannuation policies.
“Financial planners should make clients aware of the tax payable on payouts as part of a regular financial plan, particularly those in a de facto relationship,” he said.
Recommended for you
Super trustees need to be prepared for the potential that the AI rise could cause billions of assets to shift in superannuation, according to an academic from the University of Technology Sydney.
AMP’s superannuation business has returned to outflows in the third quarter of 2025 after reporting its first positive cash flow since 2017 last quarter.
The major changes to the proposed $3 million super tax legislation have been welcomed across the superannuation industry.
In holding the cash rate steady in September, the RBA has judged that policy remains restrictive even as housing and credit growth gather pace.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
215.17 3 y p.a(%)
2
Loftus Peak Global Disruption Fund Hedged
118.15 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
75.00 3 y p.a(%)
4
UBS Solactive Global Pure Gold Miners UCITS ETF Dis USD
61.11 3 y p.a(%)
5
Global X Ultra Long Nasdaq 100 Complex ETF
60.93 3 y p.a(%)
