The amazingly generous provisions for the wealthy set up by Peter Costello and John Howard fit into the category of simply too good to be true, or at least too good to last. The provisions for the wealthy set up by Peter Costello and John Howard were seemingly too good to last. Credit:Greg Newington What should flow from the summit then is a rush to load up super accounts by those who can. Assuming at least some degree of grandfathering of the likely changes, there is no time like the present for shovelling as much as possible into super. For a well-off couple, that could mean $1.15 million before the end of this financial year – or perhaps sooner in case Scott Morrison brings down a mini-budget. Much of the super commentary concentrates on the generosity of concessionary contributions, but it's actually the much fatter after-tax contributions that make the big difference when the tax haven's tax-free status kicks in.

A quick recap of the possible contributions: $30,000 in concessional contributions a year for those under 50, $35,000 concessional for those over 50, and $180,000 a year in after-tax contributions. And what's really neat is that the tax office allows individuals to pull forward an extra two years – so $540,000 this year. Contributions may be made on a spouse's behalf, so the total this year could be $1.15 million for a couple over 50. This sort of money raises interesting questions about flows should enough relatively well-off people act at once. The pressure to downsize to free up unneeded home equity would grow and the SMSF advisers should be very busy indeed. There's an immediate payoff for investors once the cash is in the super fund - earnings are taxed at only 15 per cent and capital gains half of that - but the real fun starts once a member starts drawing a partial pension: the fund's earnings become tax free, as are the pension payments. The Cayman Islands have nothing on it. Depending on the individual's circumstances, the incentive to jump in big time before the rules change may make borrowing worthwhile, though there is always the question of what to do with geared money.

On one hand, it's cheaper now than it recently was to buy shares. On the other hand, there's plenty of volatility and uncertainty about to make investors nervous. Last time major super changes encouraged individuals to borrow and load up, it was just in time for a stock market crash. Oh, the first 1-per-cent problems. The tax break is so good, the market risk is a lesser concern. Even those with their noses deepest in the trough know the current system is not sustainable. Ask someone taking full advantage how it works and they will tend to tell you with a look of amazement on their faces and a note of incredulity in their voices. Well, that's what it seems to do to me.