Super Funds and Commercial Real Estate Insights with Marco Mellado
Super Funds and Commercial Real Estate Insights with Marco Mellado
Exploring Superannuation Rules and Opportunities
ABC Radio Melbourne’s Lisa Leong recently hosted superannuation specialist Marco Mellado for an engaging conversation on key superannuation topics. Mellado tackled a range of listener queries, from pension caps to rolling over super funds and leveraging super for real estate investments. Here’s a breakdown of the discussion:
Why Can’t I Add More Funds to My Pension Phase Super?
Superannuants drawing a pension often hit the pension transfer balance cap, a limit designed to ensure fairness in the tax-free pension environment. Mellado explained that while no more money can enter the pension phase after reaching this cap, additional contributions can remain in the accumulation phase, which still benefits from a low 15% tax rate.
Rolling Over Funds Between Super Accounts
A common challenge for many, Mellado emphasized the importance of reaching out to the fund receiving the rollover. This fund typically handles the administrative work by providing a transfer form. However, Mellado warned of potential insurance loss, such as death or disability cover, tied to the old fund. To maintain these benefits, he suggested leaving a small balance in the original fund.
Accessing Super Before Retirement
Listeners inquired about withdrawing super under financial hardship or career changes. Mellado clarified that unless the super includes unrestricted non-preserved funds (a legacy feature), most withdrawals are subject to age and conditions of release requirements. Transition-to-retirement pensions allow limited access from age 59, but early withdrawals generally require retirement or age 65.
Super and Real Estate Investments
Questions arose about using super for real estate opportunities. Mellado confirmed that retirees can withdraw from super, subject to conditions, to invest in commercial ventures. For instance, a listener sought to invest $100,000 from their super into industrial development, a move Mellado endorsed under the right circumstances.
Downsizer Contributions: Boosting Super Post-Property Sale
The downsizer contribution program allows homeowners aged 55 and over to contribute up to $300,000 from selling their primary residence into super. Mellado noted this opportunity bypasses contribution caps and taxation, incentivizing retirees to unlock housing stock while enhancing their super savings.
Super Contributions Post-70: Is It Too Late?
Listeners nearing 75 were reassured they could still contribute to super within annual and total caps. Mellado highlighted the generous allowance of $110,000 annually or $330,000 over three years using a bring-forward rule, helping older Australians build tax-effective savings.
Protecting Super Contributions from Employer Negligence
For workers concerned about unpaid super contributions, Mellado advised monitoring payment timelines, which currently allow quarterly contributions. New policies mandating pay-cycle super payments aim to improve accountability but are yet to take effect.
Binding Nominations for Super Beneficiaries
Older listeners sought advice on leaving super balances to heirs. Mellado recommended using binding nominations, ensuring funds are directed as intended without disputes. He highlighted the ease of dividing funds among multiple beneficiaries with this tool.
Conclusion
From navigating tax caps to maximizing contributions and investing in real estate, Mellado provided practical solutions tailored to Australians at different life stages. His insights underscore the importance of understanding superannuation rules to maximize benefits.
Want to dive deeper into these super tips? Stream the full interview on the ABC Listen App.
