Cryptocurrency has become a hot topic in the investment world, drawing excitement and caution.

For those managing Self-Managed Superannuation Funds (SMSFs), the allure of potential profits is tempting. But before diving in headfirst, it’s crucial to understand the risks involved. Here’s a reader-friendly breakdown to help you navigate this complex landscape.

Understanding SMSFs and Cryptocurrency

SMSFs offer trustees the flexibility to choose where to invest their funds. While many modern trust deeds allow for a wide range of investments, including cryptocurrencies, checking your specific deed for any restrictions is essential.

Currently, there are no laws prohibiting SMSFs from investing in cryptocurrencies as long as trustees comply with regulatory guidelines.

The Benefits of Cryptocurrency Investment

Adding cryptocurrency to your SMSF portfolio can offer several advantages:

  • Diversification: Cryptocurrency provides an opportunity to diversify your investments beyond traditional assets like stocks and bonds.
  • Security: Thanks to blockchain technology, transactions made with cryptocurrencies are transparent and traceable.
  • Potential Tax Benefits: SMSFs may enjoy tax advantages compared to individual investors, provided they adhere to ATO regulations.

Navigating the Risks

However, it’s essential to consider the risks:

  • Volatility: Cryptocurrency prices can be highly unpredictable, making it challenging to forecast returns.
  • Regulatory Uncertainty: Government regulations could impact the cryptocurrency market, affecting investment values.
  • Scams: SMSFs are prime targets for scammers looking to exploit the anonymity of cryptocurrency transactions. Common scams include fraudulent investment offers and fake trading accounts.

Protecting Yourself from Scams

To avoid falling victim to scams:

  • Verify Sources: Always research and verify investment opportunities before committing funds.
  • Stay Informed: Educate yourself about common cryptocurrency scams and red flags to watch out for.
  • Exercise Caution: Be wary of unsolicited investment offers and promises of guaranteed returns.
  • Report Suspicious Activity: If you suspect fraudulent behaviour, report it to the appropriate authorities.

While cryptocurrency presents exciting investment opportunities for SMSFs, it’s essential to approach it cautiously. By understanding the risks involved and taking proactive measures to protect yourself from scams, you can confidently navigate the world of cryptocurrency investment. Stay informed, do your due diligence, and consult with licensed advisers if needed.

There exists a persistent and concerning gender gap in superannuation.

Women often find themselves disadvantaged compared to their male counterparts when building wealth for their golden years. Superannuation plays a crucial role in this narrative, whether via income, career breaks or even Australia’s retirement savings system.

Let us explore the factors contributing to the gender gap in superannuation and discuss actionable steps to empower women to bridge this divide and secure their financial futures.

Understanding The Gender Gap

  • Income Disparity: One of the primary drivers of the gender gap in superannuation is the income disparity between men and women. Women, on average, earn less than men across various industries and occupations, resulting in lower superannuation contributions throughout their working lives.
  • Career Interruptions: Women are more likely to experience career interruptions due to caregiving responsibilities, including raising children or caring for elderly relatives. These interruptions can lead to periods of reduced income and missed superannuation contributions, further widening the gender gap in retirement savings.
  • Part-Time Employment: Women are disproportionately represented in part-time and casual employment, often with lower wages and reduced access to employer-sponsored superannuation contributions.
  • Longer Life Expectancy: On average, women tend to live longer than men, requiring more significant retirement savings to support themselves throughout their extended retirement years. However, the gender gap in superannuation means that women may face greater financial insecurity in their later years.

Closing The Gap

  • Equal Pay: Addressing the root causes of the gender pay gap is essential for closing the superannuation gender gap. Employers must commit to paying women fairly for their work, regardless of gender, and take proactive steps to eliminate wage disparities within their organisations.
  • Flexible Work Arrangements: Providing flexible work arrangements, including remote work options and flexible hours, can help women balance their caregiving responsibilities while maintaining their careers and superannuation contributions.
  • Education and Awareness: Increasing financial literacy among women is crucial for empowering them to take control of their financial futures. Educational programs and resources focusing on superannuation planning, investment strategies, and retirement savings can help women make informed decisions about their finances.
  • Government Policies: Governments can implement policies and initiatives to close the gender gap in superannuation, such as increasing the superannuation guarantee rate, extending superannuation contributions to paid parental leave, and providing tax incentives for low-income earners to boost their superannuation savings.
  • Supportive Partnerships: Encouraging open and transparent conversations about finances within relationships can ensure that both partners are actively engaged in superannuation planning and retirement savings. Couples can work together to set joint financial goals and develop strategies to achieve them.

Closing the gender gap in superannuation is a multifaceted challenge that requires concerted efforts from individuals, employers, governments, and society.

By addressing income disparities, supporting women’s career progression, increasing financial literacy, implementing supportive policies, and fostering equitable partnerships, Australia can empower women to bridge the superannuation gender gap and achieve financial security in retirement.

Together, we can create a future where all women have the opportunity to retire with dignity and independence.

Many superannuation funds offer life insurance as part of their member benefits package.

This type of insurance provides a lump sum payment to the policyholder’s beneficiaries in the event of the policyholder’s death or if they become terminally ill.

Life insurance through superannuation offers several advantages:

  • Cost-Effective Coverage

Since super funds purchase insurance policies in bulk, they can often negotiate lower premiums than individuals purchasing standalone policies.

  • Automatic Acceptance

In many cases, members are automatically enrolled in the default insurance option offered by their super fund without the need for medical underwriting, making it accessible to individuals with pre-existing health conditions.

  • Tax Efficiency

Premiums for life insurance held within superannuation are generally paid using pre-tax dollars, potentially reducing the overall cost of coverage. Additionally, lump sum death benefits paid to dependents are usually tax-free.

Considerations and Implications

While life insurance through superannuation offers numerous benefits, there are several important considerations for policyholders:

  • Coverage Adequacy: 

Default insurance coverage provided by super funds may not be sufficient to meet the specific needs of all members. Individuals should assess their insurance needs and consider whether additional coverage is necessary.

  • Eligibility and Conditions: 

Eligibility for life insurance through superannuation may vary depending on factors such as age, employment status, and fund membership. Policyholders should review their fund’s insurance policy to understand coverage terms, conditions, and exclusions.

  • Premiums and Fees: 

While insurance premiums within superannuation may be lower, policyholders should be aware of any associated fees and charges, which can impact the overall value of their super balance.

  • Impact on Retirement Savings:

Holding insurance within superannuation can reduce the overall balance available for retirement savings, particularly for younger members who may have decades until retirement. It’s essential to balance insurance protection and long-term retirement goals.

Life insurance through superannuation is a valuable resource for individuals seeking affordable and accessible protection for themselves and their families. By understanding the benefits, considerations, and implications of this type of coverage, policyholders can make informed decisions to safeguard their financial future. As with any financial decision, seeking professional advice tailored to individual circumstances is advisable to ensure adequate protection and long-term financial security.

Unveiling an often underestimated yet pivotal facet of superannuation, it’s imperative to shed light on the distribution of death benefits.

Superannuation death benefits encompass allocating where a deceased individual’s superannuation funds are to go, or what is to happen with them after their passing. This intricate process demands meticulous consideration and strategic planning.

Exploring the nuances surrounding superannuation death benefits entails navigating a spectrum of critical factors. From designating the appropriate beneficiary to optimising tax liabilities, understanding these intricacies is paramount for a comprehensive grasp of your relationship with superannuation.

Delve into the foundational aspects of superannuation death benefits to deepen your understanding of the essential considerations and shape your ongoing journey with superannuation.

Components of Superannuation Death Benefits:

  • Superannuation death benefits typically consist of two main components:
    • Taxable Component: This includes the taxable portion of the deceased’s superannuation account, subject to applicable tax rates.
    • Tax-free Component: This component is not subject to tax and often includes contributions made from after-tax income.


  • Identifying and specifying beneficiaries is a critical step. Beneficiaries can include dependents, such as spouses or children, as well as non-dependents. Different tax implications may apply to each category of beneficiaries.

Taxation of Superannuation Death Benefits:

  • The tax treatment of death benefits depends on various factors, including the relationship between the deceased and the beneficiary, the components of the benefit, and whether the beneficiary is a dependant or a non-dependant.
    • Dependent Beneficiaries: Generally, superannuation benefits passed on to dependents (e.g., spouses or children under 18) are tax-free.
    • Non-Dependent Beneficiaries: Non-dependents, like financially independent adult children or non-relatives, may be subject to tax on the taxable component of the benefit.

Binding Death Nomination

A binding death nomination is essential. This legal document specifies who should receive the superannuation death benefits and in what proportion. This helps streamline the process and ensures the deceased’s wishes are followed.

Estate Planning Considerations

Superannuation death benefits are an integral part of estate planning. The aim is to align your superannuation strategies with your broader estate planning goals.

Communication and Documentation

Understanding the implications of superannuation death benefits and maintaining accurate documentation is crucial for compliance and transparency. If you have questions, you are highly encouraged to speak with your adviser to ensure that you have the correct, tailored guidance that solves your problem.

Please don’t hesitate to reach out if you have specific questions or wish to discuss your circumstances further.

As a small business owner gearing up for retirement, selling your business can be a strategic move to give your nest egg that final boost.

However, navigating the intricacies of selling a business requires careful consideration, especially when it comes to contributing the sale proceeds to your superannuation fund. Let’s explore these essential considerations and small business concessions that can significantly impact your retirement savings.

Remember: always consult with a trusted and licensed adviser before acting.

When selling a business or business asset, small business owners have the opportunity to contribute a substantial portion of the sale proceeds to their superannuation fund without breaching the super caps. To make this work effectively, it’s crucial to understand and leverage four small business concessions that can help minimize capital gains tax (CGT) implications.

The 15-Year Exemption

The 15-year exemption is the most valuable concession, allowing superannuation contributions beyond the usual caps (generally as a non-concessional contribution).

However, the contribution must be made on or before the later of:

  • the day you lodge your income tax return for the income year in which the relevant CGT event happened
  • 30 days after you received capital proceeds.

If you receive a 15-year exemption amount from a company or trust, the contribution must be made within 30 days after the entity made the payment to you.

If you’ve owned the business asset for over 15 consecutive years, are over 55, and are selling in connection with retirement or due to permanent incapacitation, you may qualify.

This exemption provides a complete CGT exemption on the business sale, enabling you to contribute the full sale proceeds to superannuation.

The 50% Reduction

The 50% active asset reduction is an additional benefit, providing an extra 50% reduction of the capital gain on top of the standard 50% CGT discount available for individuals. This concession further enhances your ability to maximise your retirement savings when selling your small business.

You need to meet the basic eligibility conditions common to all 4 small business CGT concessions. This concession is applied automatically unless you elect not to apply it.

Retirement Exemption

The retirement exemption allows for a $500,000 reduction in the assessable capital gain. While this is a lifetime limit for each individual, it offers flexibility for those under 55 to pay the amount into superannuation or, for those over 55, the option to keep the amount outside superannuation.

Small Business Roll-Over

The small business roll-over permits the deferral of capital gains by rolling them into another active business asset. Utilising the retirement exemption in this context allows for a two-year deferral to contribute to superannuation or reach the age of 55. This strategic move enables small business owners to contribute to superannuation on a sale that may not have been possible otherwise.

Other Considerations and Strategies

While these concessions primarily apply to capital gains, it’s crucial to consider other factors, such as the sale of plant and equipment or trading stock, which fall under different tax sections. Additionally, the timing of the sale and the relevant contribution dates for concessions should be carefully considered.

Beyond small business CGT concessions, there are alternative strategies to boost superannuation, such as bringing forward non-concessional contributions or carrying back concessional contributions. These methods provide additional avenues for enhancing retirement savings, subject to eligibility criteria.

Selling your small business as part of your retirement strategy can be a wise move, but it requires careful planning and consideration of available concessions.

Engaging with experienced advisers early in the sale process is essential to maximise the benefits of these concessions and ensure a seamless transition into retirement.

By leveraging these strategies and consulting with knowledgeable professionals, you can make that final boost to your nest egg and embark on a secure and comfortable retirement journey.

For temporary residents in Australia, assessing your entitlement to superannuation is essential both during your employment and upon your departure.

Superannuation, commonly called ‘super,’ is a retirement savings scheme in Australia. When working in the country, your employer must typically contribute to a super fund on your behalf. Importantly, this requirement is generally not contingent on your visa type (as long as you possess work rights) or your tax residency status.

The ATO’s “Am I entitled to super” tool is recommended to determine your eligibility for super.

If you qualify, you can decide where and how your super is invested, providing a degree of control over your retirement savings.

While super is primarily designed as a long-term investment for retirement, if you are a temporary resident departing Australia, you may be eligible to claim your super (with applicable tax deductions) through a Departing Australia Superannuation Payment (DASP).

It’s important to note that you can only submit a DASP claim once you have left Australia and your visa has expired. However, starting the application process before your departure may streamline the procedure.

Upon receiving a DASP, you are entitled to a refund of any Division 293 tax you may have paid during your employment.

For New Zealand citizens, DASP eligibility is not applicable. Nevertheless, New Zealand residents or citizens may be able to transfer any accumulated Australian super to a KiwiSaver scheme provider or receive direct payment if they meet the eligibility criteria. This also includes unclaimed super funds held by the Australian Taxation Office (ATO).

It’s also worth noting that the ATO offers basic information about Australia’s tax and superannuation system in multiple languages, ensuring accessibility and understanding for individuals from diverse linguistic backgrounds.

Alternatively, you can speak with a registered tax professional (like us) for more information.

As we approach the end of 2023 and anticipate the arrival of 2024, the superannuation landscape has undergone several legislative changes since the start of the financial year.

These adjustments could influence your superannuation strategy as you enter the new calendar year, so staying informed about them is important.

Here is a recap of what has been introduced since the 2023/24 financial year commenced.

Super Guarantee Percentage Increase:

On July 1, 2023, the Super Guarantee (SG) percentage rate rose from 10.5% to 11%. Employers are required to contribute additional funds to their employees’ super accounts in accordance with this higher SG rate. The scheduled increases indicate a further rise to 11.5% on July 1, 2024, and a final increase to 12% on July 1, 2025, with the rate remaining stable unless additional legislative changes are introduced.

Return to Standard Account-Based Pension Minimum Drawdowns:

The temporary reduction in account-based pension minimum drawdown percentages, in effect from July 1, 2019, to June 30, 2023, concludes on July 1, 2023. Account-based pension holders may notice a significant uptick in their minimum drawdown requirements compared to previous years due to the conclusion of this measure.

Indexation of the Transfer Balance Cap:

The transfer balance cap, limiting the amount of super that can be transferred into tax-free retirement pensions, increased from $1.7 million to $1.9 million on July 1, 2023. Individuals with previous super transfers into the retirement phase should be aware of their unique transfer balance cap. This adjustment may provide opportunities for those unable to make non-concessional contributions in prior years to consider doing so in the 2023–24 financial year.

Increase to Age Pension Age:

Starting from July 1, 2023, the Age Pension Age rises to 67 for individuals born on or after January 1, 1957. If you were born before this date, your Age Pension Age remains unchanged. Once reaching Age Pension Age, meeting Australian residency requirements and maintaining income and assets below specified cut-off points are prerequisites for entitlement.

In conclusion, staying vigilant and informed about these changes is the key to making well-informed decisions concerning your superannuation and retirement plans. As we embark on the journey into 2024, adopting a proactive stance in comprehending and adapting to these adjustments will undoubtedly pave the way for a more secure and stable financial future.

As retirees embrace a new phase in their lives, the concept of property downsizing is gaining momentum as a strategic and rewarding financial move.

Downsizing isn’t just about reducing square footage; it’s a lifestyle choice that can offer a range of benefits for those entering their golden years.

The Changing Landscape of Retirement Living

Many retirees find themselves sitting on a valuable asset—the family home. The Australian property market has witnessed significant growth over the years, and this presents a unique opportunity for retirees. Downsizing involves selling a larger property, often the family home, and purchasing a smaller, more manageable one. This shift not only streamlines day-to-day living but also releases equity tied up in the existing property.

Financial Freedom and Flexibility

One of the primary advantages of downsizing for retirees is the financial windfall it can generate. Selling a larger property in a desirable location can lead to a substantial cash injection. This liquidity can be used to fund retirement activities, travel plans, or simply serve as a safety net for unexpected expenses. Downsizing gives retirees the financial freedom to enjoy their retirement years without the burden of maintaining a larger property.

Enhanced Lifestyle and Convenience

Downsizing often means trading a sprawling home for a more compact, easily maintainable residence. This can result in reduced household chores, lower utility bills, and a generally more manageable living environment. Additionally, many retirees choose to downsize to a location that offers greater convenience, such as proximity to amenities, healthcare facilities, and public transportation, enabling a more active and engaged lifestyle.

Navigating the Downsizing Process

While the benefits of downsizing are clear, the process requires careful consideration and planning. It’s essential for retirees to assess their current and future needs, identify the ideal location, and understand the financial implications of the move. Seeking advice from financial planners and real estate professionals can help retirees make informed decisions that align with their retirement goals.

Government Incentives

Recognizing the positive impact downsizing can have on retirees and the property market, the Australian government has introduced incentives to encourage this trend. The Downsizer Contribution allows eligible individuals to contribute up to $300,000 from the proceeds of selling their home into their superannuation fund, providing an additional financial boost for retirement.

Property downsizing for retirees is not just a practical choice; it’s a transformative step towards a more fulfilling retirement. By unlocking the equity in their homes, retirees can enjoy financial freedom, a more convenient lifestyle, and potentially even take advantage of government incentives.

As the trend continues to grow, downsizing is proving to be a key strategy for retirees looking to make the most of their golden years.

Did you know that you can set up a superannuation fund for your child even before they turn 18?

While it might seem unusual to think about retirement savings for someone so young, starting early can lead to a substantial nest egg by the time they reach their preservation age, currently set at 58 years. Whether through voluntary contributions or employer super guarantee payments, every dollar invested can potentially grow into a significant amount over time.

Imagine the impact of kickstarting your child’s superannuation fund at a much earlier age.

What if a small amount invested during childhood could have a few extra years to grow? It’s an intriguing proposition that could provide financial security for your children or grandchildren in the long run.

However, it’s essential to acknowledge that starting a super fund for your child isn’t a one-size-fits-all solution. Not everyone may have the funds readily available, and alternative investment opportunities, such as bequeathments, could be considered. It’s crucial to evaluate your financial situation and explore the best options for securing your child’s financial future.

The real magic lies in the power of compound interest. Just as adults benefit from the compounding growth of their superannuation, the same principle applies to children.

The money invested in a superannuation fund for a child continues to grow, untouched, until they reach their preservation age. Unlike a regular bank account, they are less likely to access these funds prematurely.

Consider this example: a superannuation fund with a modest initial investment of $5,000, accumulating at a conservative rate of 7% per annum over 55 years. The compound interest could turn this small amount into a substantial fund, easily exceeding $200,000. Now, excluding what that child will likely earn through the superannuation guarantee and their own contributions, that is still a healthy sum.

This example showcases the exponential growth potential that comes with investing in a superannuation fund for your child.

Investing in a superannuation fund for your child is a strategic way to secure their financial future.

By starting early, you can harness the power of compound interest and potentially provide them with a significant financial cushion as they approach retirement age.

So, why wait? Consult with your accountant today to explore the possibilities and set your child on the path to financial success.

Gender disparities are not confined to salary rates alone; they extend their reach into superannuation accounts, shaping retirement outcomes for Australian women. Various factors, including barriers to specific fields, lower hourly wages, fewer work hours, and additional unpaid labour, contribute to a significant gender gap in superannuation balances. As a result, women often retire with substantially less in their super accounts than their male counterparts.

The current landscape paints a stark picture. The median superannuation balance (as of 2022’s statistics) for men aged 60-64 hovers around $204,107, while their female counterparts in the same age group have a median total of $146,900. This glaring difference constitutes a 28% gender superannuation gap.

The impact of gender inequality on superannuation is particularly evident when women utilise maternity leave. Taking time off work during paid parental leave translates to missed super contributions, further exacerbating pre-existing income and superannuation gaps. This extended absence from the workforce during critical earning years can have lasting effects on women’s financial well-being in retirement.

The superannuation gap is also intertwined with existing salary gaps across various sectors. Despite more women entering traditionally male-dominated fields, they often find themselves in lower-ranking positions, irrespective of their experience and qualifications.

Addressing the superannuation gender gap requires systemic changes at a macro level. Several proposed measures include:

  • Inclusion of Superannuation Guarantee Contributions in Paid Parental Leave

Recognising that a majority of paid parental leave recipients are women, integrating superannuation guarantee contributions into the Commonwealth Paid Parental Leave scheme could mitigate the widening gap.

  • Unlimited Concessional Contributions for Paid Parental Leave Recipients

Allowing unused concessional contributions for recipients of Commonwealth Paid Parental Leave without time limits could counteract the negative impact on women’s superannuation outcomes.

  • Amending the Sex Discrimination Act

A critical step involves amending the Sex Discrimination Act to enable employers to make higher superannuation payments for their female employees without violating existing legislation.

Despite systemic challenges, women can take proactive steps to boost their super balances:

Contribution Splitting

Opting for contribution splitting enables spouses to transfer some superannuation contributions to their partner’s account, helping to balance and bolster their super balances.

Salary Sacrifice Contributions

Women can consider salary-sacrificing contributions into their super accounts to compensate for shortfalls resulting from periods of non-working, ensuring a more robust financial foundation for retirement.

In conclusion, the superannuation gender gap demands attention and concerted efforts for meaningful change. From policy adjustments to individual financial strategies, a collective commitment is essential to bridging this gap and ensuring a more equitable retirement future for all Australians.