..... Withdrawing it from super and immediately putting it back can have additional benefits.
Deborah could you kindly elboarte on on this?
It's funny whenever the prospect of "death taxes" is raised in Australia. People don't realise that we already have one.
It's all to do with the taxable and non-taxable components of your superannuation balance.
Your taxable component is made up of concessional contributions (the 9.5% + salary sacrificed amounts) + investment earnings.
Your non-taxable component is made up of non-concessional contributions.
This matters hugely when you die, and your benefits are paid to a non-dependent (e.g. an adult child). The taxable component of the balance is taxed at
15%. The non-taxable component is not taxed again, because think about it - it's your after tax money that you've contributed and are being handed back.
By withdrawing benefits and re-contributing them as non-concessional contributions, you increase the non-taxable component of your super and decrease the taxable component.
This strategy is quite easily implemented with an SMSF, but can still be done with a retail or industry fund.