A ‘re-contribution’ strategy is whereby funds are commuted (withdrawn) from a superannuation account into a personal name and re-transferred back into superannuation as a non-concessional contribution. The purpose of doing so is to increase the exposure to the tax-free’ component of a superannuation balance so that it can mitigate any adverse tax consequences for estate planning purposes. This strategy is pertinent where adult children who are classed as ‘non-tax dependent’ as there are tax consequences for superannuation proceeds with a taxable component. Click on the picture below to download the PDF of the case study.
