Question 1

I recently met a financial adviser and received some instruction about how to invest my super. I am not completely comfortable with the advice I received.

Is seeking a “second opinion” from a different financial adviser an option? Like you would with a mechanic or dentist. Or should I just trust my adviser’s word?

Seeking a second opinion is definitely an option. Especially if you do not understand or feel comfortable with what is being recommended you should not proceed.

Financial advisers are bound by a code of ethics, which includes the following:

• You must be satisfied that the client understands your advice, and the benefits, costs and risks of the financial products that you recommend, and you must have reasonable grounds to be satisfied

As you can see, it’s part of a financial adviser’s job to ensure you understand their advice, otherwise, they should not let you proceed. Likewise, if you cannot see the benefits in the advice you should not proceed.

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Unfortunately, many people say, “just tell me what to do”. Most financial advisers will do the right thing, and things may well work out fine. However, they tend to work out a whole lot better when you are engaged, interested and fully on board with what is being recommended.

Question 2

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I retired at the start of Covid and will soon turn 70. I own my own one-bedroom unit (value approximately $500,000), fully own an old rental property (approximate value $650,000) and receive $1400 gross per month rent, topped up with the super minimum of around $2000 a month (I have about $450,000 in a super pension fund).

I’m not sure if am eligible for any part pension, or a Commonwealth Health Care Card.

I know I will need to sell my rental property and invest three years of part proceeds into super before I turn 75 – how early or late does this need to be done?

Your help with these questions would be greatly appreciated. Many thanks, Elizabeth.

Hi Elizabeth,
As a single homeowner, you are currently over the assets test limit ($695,500 as at February 2025) to receive any age pension.

However, based on what you have provided, you should be eligible for the Commonwealth Seniors Health Card. This provides cheaper health care and other benefits, so you should apply immediately.

When you do sell your investment property you can contribute the funds to super via after tax non-concessional contributions. Contributions can be made up until you turn 75.

You could look at making a $120,000 contribution in year one, and then at the start of the following financial year, make a $360,000 contribution using the “bring forward rules”. The below table outlines the maximum non-concessional contributions that can be made depending on your total super balance.

Question 3

I am getting ready to retire. Can I put all my long service leave payable into super on my final pay, and do I save tax doing this?

Generally, no. That is because you have already accrued the benefits.

To be an effective salary sacrifice arrangement, you need to enter a salary sacrificing agreement first. Otherwise, the ATO will not allow it.

However, once you receive your long service leave benefits, you can contribute the funds to super and claim a personal tax deduction on that contribution.

Salary sacrifice contributions and personal tax deductible contributions are both considered concessional contributions and are treated the same way. Most importantly they reduce your taxable income for income tax purposes.

If you have a large income or large LSL payout then yes, this can save you tax. However, be mindful of the concessional cap.

I suggest speaking with your super fund or obtaining tax advice on identifying the appropriate amount to contribute.

Craig Sankey is a licensed financial adviser and head of Technical Services and Advice Enablement at Industry Fund Services.

Disclaimer: The responses provided are general in nature, and while they are prompted by the questions asked, they have been prepared without taking into consideration all your objectives, financial situation or needs.

Before relying on any of the information, please ensure that you consider the appropriateness of the information for your objectives, financial situation or needs. To the extent that it is permitted by law, no responsibility for errors or omissions is accepted by IFS and its representatives.