"Son, the ATO is killing me" - 5 tax strategies for wealthy Australians

This interview was recorded on Thursday 2nd April, 2026.

When tax time rolls around each year, my dad shares the same complaint with me: “Son, the ATO is killing me.”

On paper, life should be peaches and cream. He earns a good income, owns his home, has built a solid portfolio, and has maxed out his super contributions since his late 40s.

But as income, assets and lifestyle costs rise, tax has a way of turning your finances into a game of Jenga.

You pay tax to work. You pay tax on your hustles. You pay GST. You pay tax on dividends, rents and capital gains. Before long, the ATO starts sending quarterly instalments, followed by another big bill at tax time. It is relentless.

You think you’ve done the right thing by saving diligently throughout the year. Then suddenly, that Christmas holiday you thought was comfortably funded becomes the block that gets pulled - and the proverbial financial tower starts wobbling.

That’s the reality for many high-income earners, and for those approaching retirement, it can cast a shadow around whether they can retire with the lifestyle they imagined.

For the wealthy, the game is no longer just about how much you earn. It’s about how much you keep.

That’s why I sat down with Rebecca Hurford of Infocus Australia, one of the sharpest advisers on tax planning for wealthy clients approaching retirement, to unpack the strategies that can potentially save you six figures and help prevent nasty surprises at tax time.

Please note: The information in this content does not constitute financial advice - any examples are purely for illustrative purposes only. Please consultant a licensed financial adviser or accountant to help with any tax planning for your situation.

1) Use catch-up super contributions to offset capital gains

Hurford says many investors focus only on the current concessional cap and miss the ability to use unused portions from the previous five financial years.

This becomes especially powerful after selling an investment property, a share portfolio, or any CGT-heavy asset.

Illustrative example

• To put some numbers around it, imagine you triggered a short-term capital gain of $10,000 on a share trade and you're on the top marginal tax rate of 47%
• The tax bill on that trade would be $4,700.
• But if you put that profit into super as a concessional contribution, the money would generally be taxed at 15% instead, cutting the immediate tax drag dramatically while  boosting retirement savings (i.e. your bill reduces from $4,700 to $1,500).

And the benefits go well beyond the immediate refund.

“It’s boosting wealth in a low-tax environment… and once they retire and move into pension phase, generating an income, happily, as its all tax exempt.”

The catch, of course, is accessibility.

“Every cent we put into super is subject to preservation until we meet a condition of release.”

What to keep in mind:

• You can keep track of your available concessional contribution carry-forward amounts using ATO Online Services, which shows unused caps from prior years
• Assuming you've made no concessional contributions across FY22–FY26, the theoretical maximum catch-up amount available could be $142,500
• Your total super balance must be below $500,000 at 30 June of the prior financial year, so timing is of the essence
• Division 293 tax may still apply for very high-income earners, though it can still remain more efficient than paying the full marginal tax rate

2) Investment bonds are back - if your time horizon is long enough

Investment bonds fell out of favour for years as ETFs and managed funds became the default wealth-building tools. But Hurford says top-bracket taxpayers are taking another look.

The attraction lies in the internal tax treatment. Instead of paying personal rates of up to 47%, earnings are taxed inside the bond at the company tax rate, which can be significantly lower for wealthy investors.

The bigger prize is the 10-year rule.

“Once we’ve held that bond for 10 years, if we cash in and withdraw the bond, there’s no capital gains tax.”

That makes them especially attractive for intergenerational wealth, estate planning, and long-term family capital pools.

Hurford also highlighted the estate advantages.

“The capital can be paid without CGT directly to a beneficiary. It therefore bypasses the estate, bypasses probate.”

What to keep in mind:

• The biggest trap is contribution discipline. Investment bonds have a quirk where you can contribute 125% of the previous year's contribution. If you contribute over 125%, then it resets the 10-year tax-free period.
• But if you contributed nothing in the previous year, then 125% of zero is zero.
• The other key consideration is your future marginal rate. If retirement is only a few years away and your personal tax rate is likely to fall sharply, using a bond taxed at company rates may actually be less efficient than holding the investment personally.

3) The ownership structure can be as important as the asset

A common blind spot among wealthy Australians is spending too much time choosing the investment and not enough time choosing where it should sit.

Hurford says the structure often determines whether income is taxed efficiently. And it's not a case of choosing just one structure, it makes sense to think of which structure makes sense for what and for whom based on their circumstances.

Individuals

This is where assets are held under your legal name, and those of other parties like your spouse. It offers the most flexibility, lowest complexity - but also attracts the highest level of tax.

Trusts

For families with uneven incomes, trusts can be one of the most effective tax tools available.

“The beauty of a trust structure is it allows us to pick and choose each year how much income goes to which beneficiary.”

That means wealthy households can distribute more income to the lower-income spouse, adult children or other beneficiaries in softer tax brackets.

“It allows control to dictate how we distribute that income and minimise the tax along the way.”

Super and SMSF

Hurford describes super as “the most beautiful one” from a tax perspective.

“When we’re in the accumulation phase, the earnings within that super account are taxed at a lower rate, typically 15%.”

But the real magic occurs when you draw down on the money.

“Within the pension environment, we have no earnings tax, no capital gains tax, and the income we receive… is tax exempt from the age of 60 onwards.”

For SMSFs, the tax treatment is identical, but the difference is control. You manage the strategy and also have more flexibility on what your money is invested in.

That added flexibility can be valuable for wealthy Australians wanting direct property or bespoke portfolios inside super, but the compliance burden is real.

“If you inadvertently or purposely break the superannuation laws, there can be significant penalties.”

4) The June-versus-July move that can save six figures

For wealthy Australians, the tax year in which an asset is sold can be the difference between a manageable bill and a painful one.

She shared the example of a client approaching retirement who planned to sell an investment property before their final payday.

If they had gone ahead, the capital gain would have stacked on top of:

• a full year of wages
• rental income
• other investment income

Expected tax bill: $130,000

Instead, the strategy was to retire in June and sell the asset in July. “So they didn’t have 12 months of wages on their tax return.”

“We were able to reduce their tax bill down to $24,000.”

The same logic applies to:

• bonuses
• termination payments
• redundancies
• deferred trust distributions
• large dividends
• business sale instalments

Key tip: 

If you’re approaching retirement, one of the most valuable conversations you can have is with your adviser and employer about timing. 

Even small flexibility around your final pay, bonus, leave payout or other entitlements can allow income to be spread across financial years and materially reduce the tax drag.

5) Business owners: don’t sell first and ask questions later

For successful business owners, Hurford says the tax traps can be even larger.

“Don’t just assume that sale of the business will take place, money will arrive in the bank account and we’ll live happily ever after.”

This is where the small business CGT concessions can become life-changing.

Depending on the circumstances, business owners may qualify for:

• the 15-year exemption
• retirement exemption
• extra super contribution allowances linked to the sale

Hurford shared the case of a retiring farmer who sold their business and landholding.

By coordinating the accountant, client and adviser, they were able to contribute an additional $1.3 million into super above the normal limits.

“They’re now happily retired travelling around Australia, visiting their grandkids with a completely tax-free income of around $140,000 a year.”

The costly habit of tipping the taxman

Many wealthy Australians have worked hard all their lives — risking their time and capital on businesses, slogging away in demanding careers to get to the top, and investing heavily to secure a legacy and quality of life for their family.

Yet even with a high income, a successful business exit or years of disciplined investing behind them, the sting of tax can still leave them feeling like they’re not getting ahead.

That’s because wealth without structure and careful planning can still leave high earners exposed to unnecessary and onerous tax drag.

The tax-efficient use of super, trusts, timing strategies and business sale concessions can make a profound difference to what ultimately funds retirement — and how much of your hard work stays in your hands.

As Hurford puts it:

“Think about not just what’s good and right for today, but what is actually going to still be beneficial for us in the future.”

Be sure to see the full interview

We strongly recommend watching the full interview to see the full responses, and Hurford discuss other key points including:

• Whether high-income earners can keep working while contributing to super and taking money out at the same time
• How to effectively use trust structures
• Division 293 and its implications explained
• Other key mistakes and tips in order to optimise your tax bill