This super loophole can create tax-free money for the kids
There has been a surge in the number of people using so-called recontribution strategies, which allow older Australians to wash tax from super inheritances.
Super recontributions are growing in popularity. Bethany Rae
Older Australians appear to be withdrawing and then recontributing hundreds of millions of dollars of superannuation to take advantage of a strategy that has the potential to generate tax-free inheritance for their kids.
The opportunity opened up after the former Coalition government tweaked the super system to allow people aged between 67 and 75 to top up their super even if they do not meet the work test.
Michelle BowesWealth reporterMichelle Bowes writes about wealth from our Sydney newsroom. She has more than 20 years of experience as a business journalist and is the author of Money Queens: Rule your Money, an award-winning personal finance book for teenage girls. Email Michelle at michelle.bowes@afr.com
