Episode Details

Tax myths, age pension wipeouts, and the $14,000-a-year super loophole

Published 2 months, 4 weeks ago

Description

In this Australian Retirement Podcast episode, your hosts Drew Meredith, from Wattle Partners, and James O’Reilly, from Northeast Wealth, bust the myth that financial advice fees are fully tax-deductible after the 2024 changes, walk through a real client case where an insurance refund accidentally triggered the bring-forward non-concessional cap, and run the numbers on what a daily coffee, a weekly pub meal, and three streaming services really cost a retiree over 25 years. They also explain what professional indemnity insurance actually covers (and what it does not), and answer two listener questions: the best month of the year to retire, and whether a still-working 60-year-old with $2 million should set up an allocated pension now.

Topics covered today

– The myth that all financial advice fees are tax-deductible — what actually changed in 2024 and why accountants are tightening up

– A real case study: an insurance premium refund accidentally treated as a non-concessional contribution and the bring-forward trap it triggered

– Why the latest age pension increase was completely wiped out by higher deeming rates, petrol, and grocery prices

– The $432,000 cost of a daily coffee, weekly pub meal, and three streaming services over 25 years — and why we still say spend it anyway

– Professional indemnity insurance: what it actually covers, what it doesn’t, and why “bad returns” aren’t a claim

– Mad About Money’s question: what is the best time of year to retire? (Hint: August)

– Super Sandwich’s question: 60 years old, $2 million in super, still working five more years — should you start an allocated pension now?

– The over-60 super recycling strategy: meeting a condition of release, drawing the minimum, and re-contributing to save up to $14,000 a year in tax

If you like this Australian Retirement Podcast episode on tax, coffee, and the over-60 super loophole, you’ll love the series. Don’t forget to subscribe for weekly shows on Apple, Spotify, YouTube or wherever you get your podcasts.

Resources for this episode

– Wattle Partners

– Northeast Wealth

– ATO — deductibility of financial advice fees (TD 2024/7)

– Services Australia — deeming rates

– ASIC Moneysmart — conditions of release

– Drew’s book — request a free copy via the show

– Ask a question (select the Retirement podcast)

Show partner resources

– Visit TermPlus to learn more

– Join Pearler using the code "RASKSWITCH" and get $32 of Pearler Credit

Rask resources