Superannuation exists in our economic environment to assist individuals in obtaining their retirement goals.
One of the main advantages of superannuation is the tax concessions associated with it.
Tax concessions are as follows:
- Maximum tax rate of 15% in superannuation funds;
- Contributions made by employer or self employed person can be tax deductible;
- Non Concessional contributions are monies placed into superannuation for which no tax
deduction is sought. It is tax free when paid out of superannuation; and
- No tax on earnings or withdrawal of superannuation monies once retired or over the age of 60.
Before selecting superannuation as an investment strategy the following needs to be considered:
- If any more tax-efficient structures exist;
- Superannuation benefits are preserved until retirement (after fifty five); and
- Self Managed Superannuation Funds (SMSF)
Take direct ownership of your superannuation is a SMSF.
The most common reason why an individual wants a SMSF to:
- Exercise control over the investment assets;
- Generate better returns than a fund manager;
- Prefers for direct investing; and
- Property investments.
As a specialist in this area, we can assist and recommend our clients in their decision making process.