Question 1

For a long time, I have ignored my superannuation and left it to my fund to make all the decisions.

Now that I am close to retirement, should I take a more active role in making investment decisions with my super?

Taking a more active interest doesn’t necessarily mean you need to start selecting individual investments yourself.

If someone hasn’t made an investment choice, their super will generally be invested in their fund’s default MySuper option.

These are designed to provide a relatively simple investment solution, and some use a lifecycle approach that automatically changes the investment mix as members get older.

But approaching retirement is a useful time to understand how the money is invested.

For example, it’s worth knowing how much exposure an investment option has to growth assets such as shares and property compared with more defensive assets such as bonds and cash. Different combinations produce different levels of expected risk and return.

Retirement doesn’t necessarily mean all investment risk needs to disappear.

Super may remain invested for many years after someone stops working, while moving too heavily into cash or defensive investments introduces other risks, including inflation reducing purchasing power over time.

Equally, understanding how much an investment option could fluctuate becomes increasingly relevant when someone is approaching the point where they will begin drawing on their savings.

So, becoming more engaged doesn’t necessarily mean becoming your own investment manager.

It can simply mean understanding your current investment option, how much risk it takes, how diversified it is and whether its objectives continue to make sense as retirement approaches.

Question 2

I am aged 69 and retired. I live with my partner and we are both self-funded retirees.

Can I apply for a Commonwealth Seniors Health Card and how difficult is it to obtain one?

Yes. In fact, the Commonwealth Seniors Health Card is specifically available to eligible Australians who have reached Age Pension age, but don’t receive certain income support payments.

Importantly for self-funded retirees, there is no assets test. Instead, eligibility includes an income test.

From September 20, 2026, the annual income limits are:

• $105,048 for a single person
• $168,076 combined for a couple
• $210,096 combined for couples separated due to illness, respite care or prison.

The test looks at adjusted taxable income and, where applicable, deemed income from account-based pensions.

This means having substantial assets or superannuation doesn’t automatically rule someone out, but some retirement income streams can still contribute to the income assessment.

For a couple who doesn’t receive an Age Pension, the current deeming rates are 1.75 per cent on the first $55,300 of each person’s own and share of joint financial assets, and 3.75 per cent above that amount.

So, for self-funded retirees, it’s worth understanding the distinction between the Age Pension means tests and the Commonwealth Seniors Health Card income test.

Being ineligible for the Age Pension because of assets doesn’t necessarily mean someone will also be ineligible for the card.

Question 3

In Australia, is there inheritance tax on cash left to family?

The short answer is no.

Australia does not have an inheritance or estate tax, so a beneficiary isn’t generally taxed simply because they inherit cash from a deceased estate.

However, that doesn’t mean everything associated with an inheritance is always tax-free.

For example, an estate may continue earning interest, dividends or rental income while it is being administered and tax obligations can arise on that income.

If someone inherits assets such as property or shares, capital gains tax may also become relevant when those assets are subsequently sold.

Superannuation is another important exception to be aware of.

Super death benefits have their own tax rules, with the outcome depending on factors including whether the recipient is considered a dependant under tax law and the taxable and tax-free components of the benefit.

But if the question is simply whether an adult child pays an Australian inheritance tax because they receive cash left to them through a parent’s estate, there is no separate inheritance tax on the cash itself.

It’s useful to distinguish between inheriting money and inheriting an asset that might subsequently generate income or a taxable capital gain.

Paul Johnston and Linda Panaszek are financial advisers within the IFS Trusted Advice Network.

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.