Superannuation Strategies

We often recommend self managed super funds to provide greater control of investments while at the same time enabling you to take advantage of the tax advantages available through the dividend imputation system.

While it's true that just having control of assets doesn't necessarily mean increased profit, it does allow you to keep your finger on the pulse and makes for better decision making, which can lead to more profit.

The tax benefits from dividends can be used to reduce, offset or eliminate the contributions tax, surcharge levy and the earnings tax within your superannuation fund.

For example...

Tax credits from dividends come through at 30% but the tax on super funds is only 15%.  So the surplus tax credits, after paying the 15% tax on the income earned in the fund, can be used to offset the other taxes such as contribution tax & surcharge levy.

One of the other advantages of superannuation is the low capital gains tax.  If an asset of yours is held for more than 12 months then the maximum tax rate on the capital gain is only 10.0%.

That tax rate makes quite a difference to the net result on a high growth asset!

The property market boom many enjoyed highlighted the effect that a low tax rate can have on the net result of an investment.

Phone:             (07) 3808 7588
Fax:                  (07 3808 7633
Email:              Contact David Wilkins Here.
Website:         http://www.davidwilkins.com.au

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