3 hours ago
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July 5, 2026 — 5:01am
I am 59 years old, and my superannuation balance is approaching the $2 million transfer balance cap. I expect to keep working for a few years and accumulate more. Where should I put the additional funds? Is it better to add into my super account, or start to create investments outside of super?
Balances over the transfer balance cap (recently it became $2.1 million) remain in the accumulation phase and are taxed at 15 per cent on earnings and 10 per cent on capital gains. This is an attractive outcome for most people with significant wealth, so I wouldn’t be at all concerned about overshooting your cap.
Indeed, it is likely to be a sensible strategy. Once retired you can always take that money out anyhow, so if at some point in the future it no longer made sense to pay that tax, you would simply withdraw the funds. This “excess” pool of savings can also be useful for lump sum expenses like a car update, or a big trip.
I need to transfer a share portfolio from a personal trading account to a newly established SMSF account. I can transfer the shares between accounts with just a small fee to my broker, but will the ATO regard this transaction as having “sold” the shares to the SMSF account, thereby making it liable for CGT?
Yes, they will. What you are doing here is an in-specie transfer. It’s largely a psychological piece. The outcome would be identical from a tax perspective were you to sell the shares in your personal name, deposit the cash into your super, and then simply buy the shares back.
The only benefit of doing in-specie transfers is a small saving in brokerage costs, though often this saving is outweighed by the paperwork required.
My 18-year-old daughter has been working since year 9 and has $3000 in savings. She continues working, earning $150 a week. How could she invest this money?
I can’t recommend specific products here, but there are several good low-cost options that focus on index type investments that would work well. Ideally find one that provides an automated regular savings plans at no cost.
It would certainly be great for your daughter to get some experience investing this early. Learning how markets go up and down will set her up for the future when she has much larger sums to deal with.
I read recently that the government is changing the rules regarding SMSFs borrowing to buy property. I own an apartment in my SMSF and have a loan against it. I don’t have the cash to clear the loan. Will I have to sell the property? It is worth less than what I paid for it at present, so I really don’t want to do that if possible.
You are OK here as the change only relates to new investments. You will not be forced to sell your property. That said, ensure that you are confident this remains a good investment. There may be a case for taking your medicine regarding the loss here, and redeploying your savings elsewhere with better growth prospects.
Assuming you decide to retain the property, do all that you can to diversify the holdings within your SMSF as new money enters the fund – employer contributions and rent. Often I see people deploying strategies such as you have embarked upon here, with all their eggs in one basket, and if the property doesn’t perform, their retirement outcome is very significantly harmed.
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 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.
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