Division 296 is live. From 1 July, earnings on the part of your super balance above $3 million get taxed at 30%, and above $10 million the rate is 40%. The narrative is that this is a tax on rich retirees. Ben takes a 38-year-old on $400k with $600k in super, doing nothing more exotic than the standard concessional contribution, and shows them crossing $3 million at 57, three years before they can touch the money.

The episode is about what to do with that. Why 30% inside super is a worse deal than 30% in a company or an investment bond, because those structures let you get at the money. Why Siobhan asks everyone rushing into an SMSF the same one-word question.

Why a couple gets $3 million each, which makes evening up balances the strategy that matters, and how spouse contribution splitting lets you move 85% of your contributions across years before you can access super. And why Ben would rather land under the cap than over it, because there are no givebacks.

WHAT YOU'LL GET OUT OF IT

• How Division 296 actually works, and what it taxes

• The 38-year-old on a normal contribution strategy who hits $3 million before 60

• Why 30% in super is worse than 30% in a company or investment bond

• The 40% rate above $10 million, and what it says about the government's intentions

• What happens to an SMSF holding property when the balance moves

• Why the question to ask before any super strategy is what the money is for

• The $3 million per person rule, and why uneven couple balances cost you

• Spouse contribution splitting, and the withdraw-and-recontribute move you can only do after 60

• Why to aim under the cap and ramp up later

CHAPTERS

00:30 Super is boring, and the news isn't good
01:16 Division 296, live from 1 July
02:29 More money is going into super than ever
03:08 Super is still the best tax deduction going
04:12 How the extra 15% actually works
04:55 Why 30% in super is a bad deal
06:29 The spending cliff after 70
07:19 The 40% rate above $10 million
07:53 Siobhan's question for everyone rushing into an SMSF
08:46 The 38-year-old who hits $3 million at 57
10:32 How the tax gets calculated on property in an SMSF
12:00 Is your SMSF still worth it?
12:30 The caps are now indexed
13:14 Aim under the cap, not over
14:48 Div 296 doesn't make super bad
16:07 A couple gets $3 million each
17:04 Spouse contribution splitting
19:00 What an SMSF changes, and what it doesn't
19:41 Wrap: strategic, not switched off

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DISCLAIMER
This podcast is for education only and doesn't take into account your personal circumstances. It's not financial advice. If you buy a financial product, read the PDS and TMD, and seek advice tailored to your situation. Ben Nash and Pivot Wealth are authorised representatives of Fish Tacos Pty Ltd, ABN 14 649 248 082, AFSL 533055.

The AFR reckons rentvesting is dead now that negative gearing has been wound back. Jack Henderson reckons the AFR has it backwards, and he's paying $3,700 a week in rent while he says it.

This one moves fast. Jack explains the valuation method most property investors have never heard of, where a property with two incomes on one title gets valued on its rent instead of on what the neighbours sold for, and walks through the duplex where that difference was worth more than a million dollars. He puts a number on what a dollar of rent is worth in value.

He gets specific about the off-the-plan settlements he thinks are about to go wrong, and the capital gains tax bill you can get on a property that never went up. And he ends with the single piece of research he tells every young investor to do before they touch anything.

Language warning. Jack talks the way Jack talks. This one isn't for the school run.

WHAT YOU'LL GET OUT OF IT

• Why rentvesting still works without negative gearing, and where it stops making sense

• The cap rate valuation method, and why it only applies to properties with multiple incomes on one title

• Jack's duplex, a $500k paper loss that became a gain by not subdividing

• What a dollar of rent is worth at a 5% cap rate versus a 3% cap rate

• The off-the-plan settlements about to land 20% under contract price

• Why depreciation can hand you a CGT bill on a property that didn't grow

• The only time Jack thinks you should buy brand new

• What he tells clients who are scared of prices falling further

• Why the tax narrative looks different once you know corporate tax was 49% in the 80s

• The question to ask the oldest person you know

CHAPTERS

00:10 Is rentvesting dead?
01:28 The rent increase Jack refused to pay
02:32 Has the YAM strategy changed since the budget?
03:52 The duplex: $5.25m, then $4.7m, then $6.5m
07:47 When valuers use a cap rate
08:20 What a dollar of rent is worth
08:52 The Paddington office at a 2.8% cap rate
10:06 Everyone's feeling battered. What now?
11:25 If you do nothing, will you get there?
12:21 Corporate tax was 49% in the 80s
14:56 Who actually pays the tax in Australia
15:43 Worried about valuations falling?
16:08 Off-the-plan carnage
17:22 The 5% deposit scheme and negative equity
19:19 The depreciation trap that creates a CGT bill
21:43 Will more finished properties come to market?
22:36 The only time to buy brand new
25:24 De-risking a falling market
26:13 Has the playbook changed?
28:09 So, for the AFR readers, is rentvesting dead?
28:46 Ask the oldest person you know
31:35 Buy a fast boat

GUEST LINKS
Jack Henderson, Henderson Advocacy: https://henderson.com.au/
Jack on Instagram: https://www.instagram.com/jackchenderson/

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DISCLAIMER
This podcast is for education only and doesn't take into account your personal circumstances. It's not financial advice. If you buy a financial product, read the PDS and TMD, and seek advice tailored to your situation. Ben Nash and Pivot Wealth are authorised representatives of Fish Tacos Pty Ltd, ABN 14 649 248 082, AFSL 533055.

On 12 May the budget killed the bucket company. A 30% minimum tax on trust income was the headline, but the real damage was underneath it, because that tax came with no credit when the money moved on to a company. Stack the two together and business owners were looking at an effective rate over 60% on profit they had already been taxed on once.

On 3 September the government released draft legislation that changes the picture, and Ben walks through exactly what it does. There is a window, it closes on 1 July 2028, and if you make a fixed election on your trust before then, the 30% minimum tax doesn't apply. The trade is that a discretionary trust stops being discretionary, forever.

Ben runs the numbers on a business making $400k a year and shows a gap of just under $2 million between two owners doing the same thing in different structures. He also covers the strategy the election kills, which is distributing to your adult kids. And he explains why who owns the shares in your bucket company now matters more than it ever has, with a 22-month window that just started.

WHAT YOU'LL GET OUT OF IT

• What a bucket company is and why business owners built their wealth around it

• How the budget got the effective tax rate on trust distributions above 60%

• What the 3 September draft legislation changes, and when it's expected to pass

• The fixed election, how it works, why it's permanent, and the two things that reset it

• A business making $400k a year, in a company versus personally, over 10 and 30 years

• Why distributing to adult children is now off the table

• Who should own the shares in your bucket company

• What happens to anyone who starts a business after 1 July 2028

• The sequence to follow before the window closes

CHAPTERS

00:06 Is the bucket company dead?
01:10 What a bucket company actually does
02:53 What the budget did on 12 May
05:00 The 3 September draft legislation
06:13 The election window closes 1 July 2028
08:15 A discretionary trust that isn't discretionary
10:30 Plan ten years out, not twelve months
11:35 If you start a business after July 2028
14:21 Ben paid himself nothing for three years
15:45 The numbers: $200k a year into a bucket company
18:33 The adult kids strategy is finished
20:44 Income versus distribution, and payroll tax
21:27 Who should own the bucket company
22:46 Stress test your accountant
23:23 The 22-month window
24:02 Stamp duty and why the states said no
25:57 The sequence to follow before the deadline
28:00 Don't die wondering
29:20 Wrap

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Virgin Millionaire: https://amzn.to/3VFPPDM
Replace Your Salary by Investing: https://amzn.to/3J9Ta8g
Get Unstuck: https://amzn.to/3xo0MQG
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DISCLAIMER
This podcast is for education only and doesn't take into account your personal circumstances. It's not financial advice. If you buy a financial product, read the PDS and TMD, and seek advice tailored to your situation. Ben Nash and Pivot Wealth are authorised representatives of Fish Tacos Pty Ltd, ABN 14 649 248 082, AFSL 533055.