| Self Managed Superannuation Funds |
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Control over investments - The client has direct input into how their retirement savings are invested. This means they can tailor aninvestment strategy specific to their needs and financial circumstances. |
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Investment flexibility - Clients have access to a large variety of investment products not typically available through traditional retail funds. |
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Tax concessions - Franking credits generated by share investments can help to offset tax liabilities, including earnings, contributions and capital gains tax. |
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Cost-effective - High net wealth individuals and small to medium-sized business owners with over $100,000 in superannuation assets may incur lower administration costs than they would using traditional retail super funds. As the level of assets within a SMSF increases, these costs as a percentage of the fund’s assets may reduce. |
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Estate planning opportunities - A SMSF can be passed on tax-effectively to nominated beneficiaries, including adult children or young dependants. In the event of bankruptcy, assets held within the fund are also protected from creditors. |
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Fund portability - Unlike an employer sponsored fund, where a change of career can mean having to set up a new super fund or having to consolidate existing funds, a SMSF is flexible enough to follow the client through their career. |
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| Some Super ways to save tax |
| Five top super tips - Your super could be the most tax-effective way for you to save, invest and build wealth for your future. And, by making clever use of super’s tax advantages, you may pay significantly less tax. |
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1) Self employed? Use your super to save tax
2) Government Co-contribution
3) Try sacrificing
4) Concessional tax treatment means faster growth
5) Tax free pensions |
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1) Self employed? Use your super to save tax
If you are classed as substantially self-employed and meet eligibility criteria for tax purposes, every dollar you contribute to super can now be claimed in full. Depending on your age the maximum is $50,000 for those under age 50 and $100,000 for over 50's |
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| Your Age |
Contribution required for maximum deduction
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| Below 50 |
$25,000 |
| Over 50 |
$50,000 |
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2) Government Co-contribution
If you make a personal (after tax) contribution to super of up to $1000 the government will also make a contribution of up to $1.00 per dollar. To access this you need Assessable Income of less than $58,980. It is not often the Government gives out TAX FREE MONEY!
eg:
You earn $25,000 gross, contribute $1,000 from your after tax dollars, the government will contribute $1,000 also.
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3) Try sacrificing
Salary sacrifice is where your employer makes deductions from your before-tax salary to make super contributions. It means you’ll pay only 15% tax on your super contributions*, instead of making investments from what’s left with your after-tax salary.
Sacrificing a portion of salary or wages may impact other employer benefits and entitlements such as the calculation of annual leave, long service leave, leave loading and superannuation guarantee payments. It is a good idea to weigh this up against the tax benefit obtained through salary sacrifice. |
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4) Concessional tax treatment means faster growth
The maximum tax rate on your super investment earnings is only 15%. Compare this to your marginal tax rate, which could be 46.5% (including the Medicare Levy). This means that you may have more money in super and has the potential to grow faster. Capital gains on assets owned for more than one year are only taxed at 10%. |
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5) Tax free pensions
From 1/7/2007 most pensions and lump sums from Superannuation will be tax free for those aged over 60. This is an even bigger reason to contribute to Super today.
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*Important Notice
This information does not take account of your objectives, financial situation or needs. Because of this, you should, before acting on it, consider its appropriateness, having regard to your objectives, financial situation and needs and we recommend you consult our financial planner. This information contained in this document is based on current laws and their interpretation. The application of taxation laws depends upon an investor’s individual circumstances. You should, therefore, seek professional advice on the taxation implications of investing and should not rely on this information, which should be used as a guide only. This document contains general information only and should not be considered a comprehensive statement on any matter and should not be relied upon as such. |
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