Wealth Firms Prepare Richest Australians for Pension Tax Fallout

A looming pensions tax on rich Australians is sparking a flurry of behind-the-scenes planning by the nation’s wealth managers, who say clients are actively exploring strategies to shield multi million-dollar balances.

Under legislation set to reach the Senate in coming weeks, pension balances of A$3 million ($2 million) and above would face an additional 15% tax on top of the current 15% rate. The proposal, set to affect about 80,000 people, has triggered a wave of interest from affluent savers looking to use trusts, insurance bonds and other strategies to shift funds.

“People are definitely spooked,” said Tim Cudlipp, a ...