Thirteen Strategies · Nothing Held Back

Here are the strategies. In full.

Thirteen plays that advisers actually use, written out completely — the mechanics, the arithmetic, and exactly where each one goes wrong. Nothing is paywalled and nothing is a teaser. Read them, find the two or three that fit your situation, then tell us which one you want running.

The Strategies
Thirteen plays, with the numbers
Grouped by when they apply. Each one is legal, well-established, and in constant use by people who have advisers. Worked examples use a single marginal rate so the arithmetic is followable — yours will differ.
Jump to a strategy

Working years

The compounding ones. Set these up once and they run in the background every year.

~$2,880/yr saved
01
Fill your concessional cap before the year ends
Best for — anyone earning above $45,000 with spare cash flow

Money going into super as a concessional contribution is taxed at 15% instead of your marginal rate. Your employer's contributions count toward the same annual cap, so the opportunity is the gap between what they put in and the cap — and you either use it by 30 June or lose it, with one exception covered in play 02.

Worked example — $150,000 salary
Marginal rate including Medicare levy39%
Employer contributions at 12%$18,000
Room left under the $30,000 cap$12,000
Income tax avoided on that $12,000$4,680
Contributions tax paid instead at 15%−$1,800
Net saving, this financial year$2,880
Where this goes wrong

Exceeding the cap triggers excess contributions tax and a paperwork process you don't want. Bonuses land unevenly, so the gap you calculated in August isn't the gap in June. Personal deductible contributions also need a notice of intent lodged with your fund and acknowledged before you lodge your return — miss that form and the deduction simply disappears.

~$9,600 in one hit
02
Use five years of unused cap in a high-income year
Best for — anyone with a capital gain, bonus or redundancy landing this year

Unused concessional cap carries forward for five years, provided your total super balance was under $500,000 at the previous 30 June. It's the most underused provision in Australian super and it's devastating when a one-off income spike arrives: you bank unused cap in ordinary years, then deploy it all in the year your income jumps.

Worked example — selling an investment property
Capital gain, held over 12 months$80,000
Taxable after the 50% CGT discount$40,000
Carry-forward cap available$40,000
Tax avoided at 39% on the gain$15,600
Contributions tax at 15%−$6,000
Net saving — and the money is still yours$9,600
Where this goes wrong

The $500,000 test is measured at the prior 30 June, so a strong market year can quietly disqualify you before you act. Unused amounts expire oldest-first on a rolling basis, so sequencing matters. And the contribution must be made in the same financial year as the gain — discover this in July and you're a full year too late. This is the one people learn about after settlement.

~$2,340/yr per $100k
03
Debt recycling — turn dead mortgage interest into deductible interest
Best for — mortgage holders on 37%+ with surplus cash or offset savings

Interest on your home loan isn't deductible. Interest on money borrowed to produce income is. Debt recycling converts the first into the second without increasing your total debt: pay a lump sum off the mortgage, borrow that same amount back through a separate loan split, and invest it. Same debt level, but a slice now generates a deduction — repeated until the whole mortgage is converted.

Worked example — $100,000 recycled at 6% interest
Interest on the new investment split$6,000
Deductible against income at 39%$2,340
Change in total debt owed$0
Annual benefit, every year the split runs$2,340
Where this goes wrong

The strategy most often destroyed in execution. Deductibility follows the use of the borrowed money, not what secures it — redrawing from your existing loan instead of a clean new split contaminates the whole loan. Depositing borrowed funds into an account holding your own money muddies the trail. Paying investment interest from a mixed account invites apportionment arguments. Get the structure wrong at the start and it isn't tidied up in hindsight.

Costs $0 to get right
04
Keep savings in an offset, never in redraw
Best for — anyone who might ever turn their home into an investment property

An offset holds your money beside the loan. Redraw is the loan itself, already repaid down. The interest saved is identical, but they behave completely differently when circumstances change: withdraw from an offset and you're spending your own savings; withdraw the same money from redraw and you've made a fresh borrowing whose deductibility depends on what you spend it on.

Worked example — converting a $600,000 home to a rental
Savings in offset — loan balance untouched$600,000
Deductible once rented, offset withdrawn$600,000
Same savings instead paid into redraw$450,000
Deductible on that path$450,000
Deductible debt preserved by choosing offset$150,000
Where this goes wrong

Almost nobody decides this deliberately — they take the lender's default years before it matters. Some products present redraw as though it were an offset. Others charge a small fee for a genuine offset and people decline it, forfeiting a far larger benefit later. If savings are already in redraw the position can be improved, but it has to happen before the property is rented.

Cash flow + deductibility
05
Split your insurance — some inside super, some outside
Best for — families carrying meaningful cover on a tight monthly budget

Where a policy sits changes both what it costs you and how the payout is treated. Life and TPD premiums paid from super come out of concessionally taxed money and never touch your take-home pay. Income protection held personally has premiums that are generally deductible to you. Splitting across both usually beats defaulting everything to one side.

Typical structure
Life & TPDInside super — protects cash flow
Income protectionOutside — premiums deductible
Trauma / critical illnessOutside — generally not permitted in super
Net effectSame cover, lower after-tax cost
Where this goes wrong

TPD benefits from super can be taxed depending on age and components, and lump sums to someone who isn't a tax dependant can be taxed heavily — so the structure that helps your monthly budget may reduce what your family receives. Default cover inside super is frequently well below what a mortgage and dependants need, and consolidating funds can silently cancel cover you'd never be underwritten for again.

Couples & first homes

Two people are taxed as two people. Most couples leave this entirely on the table.

$540 offset + even balances
06
Spouse contributions and contribution splitting
Best for — couples with uneven incomes or uneven super balances

Two separate levers. If your spouse earns under the threshold, contributing to their super earns you a tax offset directly. Separately, you can split a portion of your own concessional contributions across to them after the year ends — which doesn't save tax now, but evens the balances, and balance is what governs the carry-forward test, transfer balance caps and eventual pension access.

Worked example — spouse earning under $37,000
Non-concessional contribution to their super$3,000
Tax offset to you at 18%$540
Concessional contributions splittable to themUp to 85%
Effect$540 back, balances evened
Where this goes wrong

The offset phases out as their income rises and disappears entirely above the upper threshold, so the $540 is often claimed when only part is available. Splitting has to be applied for with the fund using their form, generally in the financial year after the contributions were made, and once the money has been rolled over or a pension started the window closes. Split too aggressively and you can strand money in the spouse who reaches preservation age later.

Deposit built at 15% tax
07
Build a first-home deposit inside super
Best for — first home buyers on a decent income, 2+ years from purchase

The First Home Super Saver Scheme lets you salary sacrifice toward a deposit and later release it. The money goes in taxed at 15% rather than your marginal rate, and comes out taxed at your marginal rate less a 30% offset. For anyone above the lowest bracket, that spread is a meaningful uplift on the same savings effort — you're simply saving in a lower-taxed container.

Worked example — $15,000 a year for three years, 39% earner
Contributed under the scheme$45,000
Tax on the way in at 15%, not 39%24% saved
Release taxed at marginal rate less 30%9% on release
Net advantage over saving in a bank account~15% of contributions
Where this goes wrong

You must request a determination from the ATO and have the release approved before you sign a contract to buy. Sign first and the money is stuck in super until retirement — this is the single most common way the scheme is lost. Annual and total limits apply, contributions count toward your concessional cap, and release takes weeks, not days, which does not sit comfortably with auction timelines.

Recognise your situation in any of those?

Most people find two or three that apply. Send us the numbers and we'll tell you what each is worth for you specifically — and which to do first.

Tell us which applies →

Windfalls & sales

One-off events where the tax outcome is largely decided by timing and structure — usually before the event, not after.

Up to 50% of the gain
08
Control the year, and the owner, of a capital gain
Best for — anyone holding appreciated shares or property they intend to sell

A capital gain is taxed in the year the contract is signed, at the marginal rate of whoever owns the asset. Both are often within your control, and the difference between handling them well and badly frequently exceeds a year of investment returns. Holding beyond twelve months alone halves the taxable gain for individuals.

Worked example — $80,000 gain, same asset, three approaches
Sold at 11 months, top-rate owner$37,600 tax
Sold after 12 months — discount applies$18,800 tax
After 12 months, in a lower-income yearLower again
Saved by timing alone$18,800
Where this goes wrong

The twelve months runs contract date to contract date, not settlement — people miss the discount by a fortnight and never realise. Ownership must be established when the asset is acquired; moving it to a lower-taxed spouse just before selling doesn't work and creates its own problem. Carried-forward losses have ordering rules, and a well-timed sale paired with play 02 is worth considerably more than either alone.

$360,000 in one year
09
Bring forward three years of non-concessional contributions
Best for — inheritances, settlements, downsizing proceeds, business sale money

Non-concessional contributions are made from after-tax money and aren't taxed going in. The annual cap is $120,000, but if you're under 75 you can bring forward up to three years and contribute $360,000 in a single year. The point isn't a deduction — it's moving a large sum into an environment where earnings are taxed at a maximum of 15% rather than your marginal rate, permanently.

Worked example — $360,000 inherited, earning 5%
Annual earnings on the balance$18,000
Tax if held personally at 39%$7,020
Tax inside super at 15%$2,700
Saved every year the money stays there$4,320
Where this goes wrong

How many years you can bring forward depends on your total super balance at the prior 30 June — get it wrong and contributions are refunded or taxed as excess. Triggering the bring-forward locks your cap for the following two years, so a large contribution now can block a better one next year. And it's a one-way door: money in super generally can't come out until you meet a condition of release, so contributing more than you can afford to lock away is its own mistake.

Potentially the whole gain
10
Small business CGT concessions on selling your business
Best for — business owners selling, or selling premises the business occupies

If your business is under the turnover or net-asset thresholds, a set of concessions applies to the gain on active assets that go far beyond the ordinary 50% discount — including a retirement exemption, a fifteen-year exemption that can wipe the gain entirely, and the ability to move proceeds into super under a separate lifetime cap well above the normal contribution limits. For many owners this is the single largest tax event of their life, and it's almost entirely structurable.

The four concessions, in the order they're usually applied
15-year exemption — owned 15+ years, retiringGain exempt
50% active asset reductionHalf the gain
Retirement exemption — lifetime limit$500,000
Rollover — defer into a replacement assetDeferral
Combined effect, where eligibleGain reduced to nil
Where this goes wrong

Eligibility turns on tests applied at the moment just before the sale — active asset status, the entity structure, who the significant individuals are, and whether connected entities push you over the thresholds. Restructuring to qualify is legitimate but has to happen well in advance; there is nothing to be done the week before settlement. This is also the one play here where you want your accountant and adviser in the same conversation from the start, not sequentially.

Approaching retirement & estate

The largest single numbers on this page live here — and they are almost all time-limited.

$600,000 per couple
11
Downsizer contributions after selling the family home
Best for — anyone 55 or over selling a home they've owned 10+ years

From age 55 you can contribute up to $300,000 each from the proceeds of selling your main residence — $600,000 for a couple — and it sits outside the non-concessional caps entirely. There's no work test and no upper age limit. Despite the name you don't have to buy anything smaller, or buy at all. It's the largest single contribution opportunity available to most Australians.

Worked example — couple sells, contributes $600,000 earning 5%
Annual earnings on the balance$30,000
Tax if held personally at 39%$11,700
Tax inside super at 15% or less$4,500
Counts toward non-concessional caps?No
Saved annually, and caps left intact$7,200
Where this goes wrong

The contribution must be made within 90 days of settlement, and that deadline is unforgiving — miss it and the opportunity is gone permanently, since it's once per person for life. The ten-year ownership test is measured precisely. Most importantly, moving money out of your home (exempt from the Age Pension assets test) into super (assessable) can reduce or eliminate a pension entitlement — so the strategy that saves $7,200 of tax can cost more than that in lost pension. That interaction has to be modelled before you sell, not after.

~$54,000 of death tax
12
The re-contribution strategy — resetting your tax components
Best for — over 60, intending to leave super to adult children

Your super balance is split into a taxable component and a tax-free component. Once you're over 60 and have met a condition of release, withdrawals are tax-free to you — but on death, the taxable component paid to someone who isn't a tax dependant, such as an adult child, is taxed. The strategy is simply to withdraw and immediately re-contribute as a non-concessional contribution, which lands in the tax-free component. Same balance, same owner, a materially smaller tax bill for your children.

Worked example — $360,000 of taxable component converted
Withdrawn tax-free after 60$360,000
Re-contributed as non-concessional$360,000
Now sitting in the tax-free component$360,000
Death benefits tax to adult children at 15%Avoided
Saved for your estate, before Medicare levy$54,000
Where this goes wrong

The proportioning rule is the trap: a withdrawal comes out of both components in the same ratio as your balance, so you cannot cherry-pick the taxable part and a single pass rarely converts everything. It typically takes several years and careful sequencing. You must be under 75 and within the total super balance limits to re-contribute, the bring-forward rules in play 09 apply, and none of it can be done after death or after capacity is lost — which is exactly when families discover the strategy existed.

Same income, less tax
13
Transition to retirement while still working
Best for — 60 and over, still working, wanting to cut hours or cut tax

From preservation age you can start a transition-to-retirement pension while still employed, drawing between 4% and 10% of the balance each year. Those pension payments are tax-free from 60. Paired with heavy salary sacrifice, you replace salary taxed at your marginal rate with pension income taxed at nothing, while the sacrificed amount is taxed at 15% going in. Your take-home pay is roughly unchanged; your tax bill isn't.

Worked example — 61, $120,000 salary
Salary sacrificed, taxed at 15% not 37%+$25,000
Replaced with TTR pension payments$25,000
Tax on those pension payments after 60Nil
Approximate annual tax reduction~$5,500
Where this goes wrong

A TTR pension is not retirement phase, so earnings inside it are still taxed at 15% — people set one up expecting tax-free earnings and don't get them until they fully retire or turn 65. The minimum drawdown is compulsory once started, so you're forced to withdraw whether or not you want to. Sacrificing too hard can breach the concessional cap from play 01, and the strategy needs the salary sacrifice and the pension to be sized against each other rather than set up independently.

On the numbers: examples use FY2025–26 settings — a $30,000 concessional cap, $120,000 non-concessional cap, 12% employer contributions, 15% contributions tax, the 50% CGT discount, and a 39% marginal rate including the Medicare levy. Caps, thresholds and preservation ages are indexed and change; your own rate, super balance and structure will move every figure above. These are worked illustrations of how the mechanics operate, not a projection of your outcome.
Expensive Mistakes
Eight ways people lose money doing the right thing
Every one of these is someone who read the correct strategy and executed it slightly wrong.

Consolidating super without checking cover

Rolling old funds into one account is sensible housekeeping — and it cancels the insurance attached to the funds you close. If your health has changed, you may not be able to replace it at any price.

Potentially uninsurable

Contributing without lodging the notice

A personal contribution is only deductible if you lodge a notice of intent and your fund acknowledges it before you lodge your return. The money is in. The deduction isn't.

The entire deduction

Recycling debt through redraw

Using your existing loan's redraw rather than a separate split blends borrowed and personal money. The deduction becomes an apportionment argument you may lose.

Years of deductions

Signing before the FHSS release

The determination and release have to be approved before you sign a contract. Sign first and your deposit is locked in super until retirement.

Access to your deposit

Missing the 90-day downsizer window

Ninety days from settlement, once per person, for life. There is no extension and no second attempt.

$300,000 of cap

Downsizing into a lost pension

Your home is exempt from the assets test. Super isn't. Moving money between them can quietly cut an Age Pension entitlement by more than the tax you saved.

More than the benefit

Selling in the wrong financial year

A contract signed on 28 June instead of 2 July lands the gain in a year you had a bonus, and forfeits pairing it with a carry-forward contribution.

Thousands, on timing

No binding death benefit nomination

Super doesn't pass under your will. Without a valid binding nomination the trustee decides who receives it — and a lapsed nomination is no nomination at all.

The whole balance
Stacked Together
What these look like combined
The plays aren't alternatives — they compound. Here is a realistic profile with four running at once.

The profile

Couple, both aged 45
Combined income$230,000
Home loan$650,000
In offset$120,000
Super, combined$360,000
DependantsTwo
Existing adviserNone
Both fill their concessional caps

Play 01 — sacrificing the gap between employer contributions and the cap

$3,400
$100,000 of the mortgage recycled

Play 03 — via a clean split, phased over two years

$2,340
Insurance restructured across super and personal

Play 05 — same cover, premiums moved to the efficient side

$1,100
Offset preserved instead of paid to redraw

Play 04 — costs nothing now, protects deductibility later

$0
Recurring benefit, first full year

Before any investment return, and repeating annually

$6,840

Something time-sensitive coming up?

Selling an asset, expecting a bonus, turning 55, or refinancing — most of these plays have a deadline attached, and several can't be fixed after the fact. Worth a conversation now rather than in July.

Start a conversation →
What We Do
Have these set up properly, once
You've read all thirteen. If you want to run them yourself, genuinely go ahead — that's why they're written out in full. What we charge for is making them happen correctly, in the right order, with the paperwork lodged on time.

Structure set-up

Loan splits established properly from the outset, contribution notices lodged and acknowledged, nominations executed, cover placed on the right side of super. The irreversible decisions, done once, done right.

Fixed fee, quoted before we start

Sequencing and deadlines

Which play runs first, and in which financial year. Contract dates aligned with contribution years, the 90-day downsizer window diarised, carry-forward amounts used before they expire.

Included in the set-up fee

Coordination with your accountant

Most of these fail at the handover between adviser, lender and accountant — plays 10 and 12 especially. We deal with all three directly so nothing falls into the gap.

Included

Annual review, only if useful

Caps move, your income moves, carry-forward amounts expire on a schedule. If your position genuinely changes each year a review earns its fee. If it doesn't, we'll tell you so.

Optional, cancel any time

Tell us which play applies to you

Name the one you want running and we'll tell you what's involved, what it's worth in your situation, and what we'd charge to implement it. If it isn't worth doing, we'll say that instead.

Get It Implemented
Get in Touch
Which one do you want implemented?

Pick the play you're interested in and tell us roughly where you're at. We'll come back with what it's worth in your circumstances and a fixed price to execute it.

We'll respond within 24 business hours. All enquiries are confidential. General advice only.

Milestone Capital operates as an Authorised Representative. Our AFSL and Authorised Representative details are available on request — email lachlan.comport@gmail.com. Everything on this page is general information only. It has been prepared without regard to your objectives, financial situation or needs, and is not a recommendation to adopt or refrain from any strategy. The worked examples are illustrations of how the relevant rules operate using stated assumptions; they are not projections and will not reflect your position. Tax, superannuation and social security settings, caps, thresholds and age tests change, including by indexation. Several strategies described here carry statutory deadlines and eligibility tests, and some are irreversible once actioned. Before acting on anything here you should obtain personal advice and consider your own circumstances, and read any relevant Product Disclosure Statement. Milestone Capital may receive commissions from insurers when policies are placed.