By Jonathon Tainsh

Ever wondered how savvy investors and financially secure retirees seem to make their money stretch further? It’s not luck—it’s strategy.
The right financial moves can help you boost your income, maximise tax efficiencies, and build long-term wealth without complicated schemes or extreme budgeting. From leveraging superannuation incentives to structuring assets wisely, these 10 strategies can help you take control of your financial future.
No matter your stage in life, there is likely a strategy here that you can use. Let’s get started.

1. Boost Your Age Pension by Adjusting Superannuation

If you or your partner receive the Age Pension, your superannuation strategy can significantly impact your entitlements. If one spouse is under Age Pension age of 67, the value of their superannuation pension is counted towards the Age Pension asset test for the older partner.
However, by shifting the younger spouse’s pension back to the accumulation phase, it no longer counts towards the test—potentially increasing the older partner’s Age Pension payments.

💡 Risk disclaimer: Ensure you seek financial advice before making superannuation adjustments, as changes can impact tax obligations and long-term financial security.

2. Use the First Home Super Saver Scheme

Buying a home in Sydney (or anywhere in Australia) can be challenging, but the First Home Super Saver Scheme (FHSSS) can help. If you haven’t purchased a property before, you can make voluntary concessional (pre-tax) and non-concessional (after-tax) contributions to your super fund, which can later be withdrawn for a home deposit.

Not only does this help you save faster, but you also benefit from superannuation’s lower tax rate of 15%, compared to your often higher marginal tax rate that applies if saving for a deposit in your own name. An individual can contribute up to $50,000, making this a valuable tool for couples saving together

3. Consider a Lifetime Annuity for Retirement Stability

A lifetime annuity is a retirement product that provides guaranteed income for life. Unlike super investments, which can fluctuate with market conditions, a lifetime annuity ensures a steady income and can be indexed for inflation. It can also be an effective supplement to the Age Pension and Superannuation Pension, providing additional financial security in retirement. Additionally, annuities receive concessional treatment under both the Age Pension income and assets tests, potentially boosting Age Pension entitlements. They are also favourably treated for calculating aged care means-tested fees, potentially reducing aged care costs.

4. Catch-Up Concessional Contributions

Superannuation concessional contributions—including employer salary sacrifice, and personal deductible contributions— reduce your taxable income and are currently capped at $30,000 per financial year (less standard employer contributions). If you have not used your full concessional contributions cap in previous years, and your total super balance was below $500,000 as of June 30 in the prior financial year, you may be able to use unused concessional contributions from the prior five financial years. This may allow an individual to make a large tax deductible contribution in a financial year.

This strategy can be particularly useful if you’ve had fluctuating income or experienced a capital gains tax (CGT) event—such as selling shares or an investment property—allowing you to make a large super contribution and reduce your taxable income.

💡 Risk disclaimer: Before making concessional contributions, consult an adviser to ensure they align with your broader financial and tax strategy.

5. Make Strategic Charitable Donations

Donating to charity is not only rewarding but can also be structured for better tax efficiency. Instead of leaving a bequest in your will, consider making donations during your lifetime while your taxable income is high to receive a tax deduction.

To qualify for a tax deduction, ensure that the charity is a registered Deductible Gift Recipient (DGR). This approach not only reduces your taxable income for the year but also allows you to witness the positive impact of your contributions.

6. Use Investment Bonds for Tax Efficiency

Investment bonds are a tax-effective investment vehicle, particularly for high-income earners and those looking to invest tax-effectively for children, grandchildren, or other intended recipients. Unlike traditional investments, where you pay tax on capital gains and dividends, investment bonds are internally taxed at a flat 30% rate. If held for at least 10 years, withdrawals are tax-free, making them an excellent tool for long-term wealth accumulation and estate planning.

For a deeper dive, see my article: Unlocking Investment Bonds for Mid-Career Wealth Building, Tax Efficiency, and Estate Flexibility.

7. Leverage Debt Recycling to Reduce Non-Deductible Debt

Not all debt is created equal. Interest on personal loans and home mortgages is not tax-deductible, whereas interest on loans used for investment purposes (such as rental properties or shares) is tax-deductible. Debt recycling allows you to:

• Use extra cash flow to pay down your home loan (non-deductible debt).
• Simultaneously borrow against the home to invest tax-effectively in income-producing assets.

This strategy helps convert your mortgage debt (“bad debt”) into a tax-deductible investment loan (“good debt”) while building a wealth portfolio over time.

💡 Risk disclaimer: Debt recycling involves risks, including market volatility and borrowing constraints. Ensure you seek professional advice before implementing this strategy.

8. Utilise Testamentary Trusts for Estate Planning

A testamentary trust is a legal arrangement established through your will that provides tax benefits and asset protection for beneficiaries. Instead of passing assets directly to individuals, they are placed into the trust for a beneficiary or a group of beneficiaries.

For example, children who inherit through a testamentary trust can benefit from the full adult tax-free threshold (approximately $19,000 per year) on taxable income distributed from the trust. In contrast, minors who receive investment income outside of a testamentary trust may be taxed at punitive rates of 45% to 66% on income exceeding $416 per financial year.

💡 Risk disclaimer: Setting up a testamentary trust involves legal and tax considerations. Consult an estate planning professional to ensure it meets your objectives.

9. Financial Support to Children for Asset Protection

Structuring financial assistance to children as a loan instead of a gift may provide additional asset protection, particularly in the event of a relationship breakdown. However, it is important to understand that this may diminish borrowing capacity with the child’s lender. As a result, it is crucial that this strategy is structured effectively with appropriate legal documentation.

10. Helping Children Build and Protect Wealth

There are several ways to support your child in building long-term financial security:

• Park cash savings in a child’s offset account: The interest earned on cash savings in a high-interest savings account (HISA) is often lower than the non-deductible interest cost on the child’s mortgage. Parking funds in an offset account may be a more efficient way to reduce their mortgage interest burden and help them repay debt faster.
• Funding Catch-Up Concessional Contributions: Help your child take advantage of unused super contribution caps, allowing them to reduce taxable income while boosting retirement savings.
• Paying for Insurance Through Super: By funding their life or income protection insurance premiums through their super fund, they receive a tax deduction while ensuring they are financially protected. This approach also reduces the financial risk to parents, as it helps ensure children and their families have adequate coverage in the event of death or disability, potentially avoiding the need for parental financial assistance in a crisis.

💡 Risk disclaimer: Providing financial assistance to children should be carefully structured to avoid unintended tax and legal consequences. Seek professional advice to ensure it aligns with your family’s broader financial strategy.
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Take Control of Your Financial Future

Whether you’re planning for retirement, looking for tax savings, or building wealth, these financial strategies can make a real difference. Each individual’s situation is unique, so it’s important to seek professional financial advice before implementing these strategies.

Curious about how these strategies can work for you? Get in touch with the team at People + Partners, and we’ll help tailor these insights to your circumstances to ensure you’re making the most of every opportunity.

Disclaimer

People & Partners Wealth Management Pty Ltd ABN 67 127 250 613 is a corporate authorised representative of Fortnum Private Wealth Ltd ABN 54 139 889 535, holder of Australian Financial Services Licence (AFSL) No. 357 306. The content of this article is for general informational purposes only and does not constitute personal financial advice. It does not take into account your individual objectives, financial situation, or needs. Any advice we provide will be detailed in a formal advice document. The opinions expressed in this article are those of the authors at the time of writing and should not be taken as a recommendation to act. To the extent permitted by law, Fortnum Private Wealth Ltd and its associates accept no liability for any loss or damage incurred as a result of reliance on this communication.