1 hour ago
2
June 23, 2026 — 9:13am
I’ve read in several places that with the changes to negative gearing, family trusts, and CGT, superannuation should be the focal point for wealth creation going forward. But I’m 42. It’s a long time until I can get at my super. So, is this advice really right for me?
Probably not. Superannuation will certainly be important to you, but the compulsory employer contribution of 12 per cent should do the heavy lifting. As you have identified, money put into super becomes inaccessible until at least 60 years of age.
Money you add to super now won’t help if you lose your job, separate from your partner, have family that get into difficulty, or just want to enjoy life before retirement. Investing in a diversified portfolio in your personal names remains relevant to address all of these potentialities. The tax changes don’t alter that.
I need to undertake about $40,000 of urgent work to my home and given the current financial situation, was wondering which is the best place to access the funds. My super (approx. $1.1 million, was earning 10.5 per cent), or redraw from mortgage at 7.1 per cent (which is paid off, but I maintain the loan facility), and just pay interest until super recovers, and then pay out via a lump sum withdrawal.
Thanks for your question, but I’m concerned it is coming from a false perception. Investments markets have delivered positive performance in recent times. Your super balance (unless invested in something unusual) is not currently depressed, and so the notion of waiting for it to recover is misplaced.
Given you have stated that the works will be funded via your super savings, your only question was around the timing, I can see no reason to access your loan facility and incur an interest expense.
I am a 62-year-old retired teacher who has bought a house before selling. The changeover cost is around $700,000. I have $1.8 million in a super pension, $300,000 in a term deposit, and an inherited share portfolio worth about $1 million today, paying about $30,000 a year in dividends. Capital gains tax on the shares is unknown as I don’t have the information on when they were bought and for how much. Where am I best to draw the required changeover money from?
Your super is providing tax-free income, so that would be the last port of call.
You need to understand the capital gains tax position of the share portfolio. Piecing this together for an inherited portfolio is often challenging, but kicking the can down the road won’t make it any easier.
I expect the solution is a combination of selling shares and using some of the term deposit money. It is likely that some shares in the portfolio will have large capital gains, whilst others have negligible gains, and perhaps even losses.
Your sell down strategy would be informed by the capital gains position of each holding, with you endeavouring to offset gains and losses wherever possible. Of course, tax isn’t the only consideration. Your decision on which shares to sell would also be informed by your expectations for the businesses’ outlook.
Those term deposit funds are a safety-net, sleep at night holding. The return is barely more than inflation, and if you spend the interest, then your investment sum is declining in purchasing power terms. Given this, $300,000 appears excessive, however, this largely comes down to your comfort around risk.
Good luck in the new home, a great stage of life to begin a new chapter.
Paul Benson is a Certified Financial Planner at Guidance Financial Services. He hosts the Financial Autonomy podcast. Questions to: [email protected]
- Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.
Expert tips on how to save, invest and make the most of your money delivered to your inbox every Sunday. Sign up for our Real Money newsletter.
