In this episode, Stuart takes a deep dive into one of the most misunderstood aspects of superannuation, how unrealised capital gains tax (CGT) affects your balance, and how to avoid it. He begins by explaining the irony of the government’s proposed tax on super balances over $3 million: while controversial, most Australians are already paying tax on unrealised gains daily via pooled super funds. Stuart breaks down how these products calculate unit prices and the role of future tax provisions in that process.
He then explores smarter alternatives, including wrap platforms and self-managed super funds (SMSFs), which allow investors to directly own assets and potentially eliminate CGT on unrealised gains altogether, provided they stay under the pension cap at retirement. Stuart walks through the financial modelling, showing how the fee trade-off still results in long-term gains, especially for high-contribution investors.
Listeners also learn about timing, portfolio turnover, and tax-saving potential across various life stages. He closes with a performance and fee comparison between pooled funds like Vanguard and wrap platforms, offering guidance on when the shift is worth it. This episode is essential listening for anyone serious about optimising their super and reducing tax drag over a lifetime.
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IMPORTANT: This podcast provides general information about finance, taxes, and credit. This means that the content does not consider your specific objectives, financial situation, or needs. It is crucial for you to assess whether the information is suitable for your circumstances before taking any actions based on it. If you find yourself uncertain about the relevance or your specific needs, it is advisable to seek advice from a licensed and trustworthy professional.
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