I have $60,000 in superannuation. I want to contribute a bit more say $20,000 and let it grow for my son to inherit. I am almost 67. Is this legal and can it be just left for him to inherit when I die. Will he have to pay tax on it? He is the binding beneficiary on my super form at present till 2027.
Probably yes, if he is over 18 when you die. For the super to be tax free your son needs to be a dependent. From the ATO website.
"Children over 18 years old must be financially dependent on the deceased to be considered a dependent."
See full link for dependent under tax law.
If he is not a dependent then the super payment will be taxed at either 15% (taxed element) or 30%.(untaxed element). See this link on tax rates.
Probably yes, if he is over 18 when you die. For the super to be tax free your son needs to be a dependent. From the ATO website.
"Children over 18 years old must be financially dependent on the deceased to be considered a dependent."
See full link for dependent under tax law.
If he is not a dependent then the super payment will be taxed at either 15% (taxed element) or 30%.(untaxed element). See this link on tax rates.
There is one way so your son will not pay tax on your death for Super money. Take it all out except for 1000 dollars. This is what I will be doing. Inheritance from bank accounts do NOT pay any tax to the beneficiaries. Only if the money still is in Super do they pay tax. Another criminal act by the Government.
No he doesn’t pay tax on the inheritance of your super if you have been using the 120 rule or 360 carry forward it’s really not out there for everyone to read. They don’t want you to know. they want your money.
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