Surely the tax-free threshold of $1.6 million for an individual should be changed to a combined figure for a couple. This is how the eligibility for a pension is determined, and not on the individual assets of one partner.
There are many reasons why it is not appropriate for one partner to transfer funds to their spouse, for example, in a divorced and remarried couple where they wish to protect the inheritance of their individual children. Surely it is fair to determine a tax-free balance of say $.30M for a married couple, and not for the individuals themselves.
What to do in these circumstances?
A: Thanks for the question.
I think there is something to be said in looking at super at the combined figure, in the same way it is assessed for the pension.
