How you can have thousands more from the money you already have…

Superannuation is one of the most tax effective ways of saving for the long term. The government’s strategy is to encourage self funded retirement and, as a result, there are significant tax benefits to saving within Superannuation funds.

Salary sacrificing is one of these benefits. Contributions are made direct from your employer and are only liable to 15% tax within the superannuation fund. This results in significant savings to tax payers with a 31.5% or 46.5% marginal tax rate.

The ongoing growth/earnings of investments within superannuation are also taxed at the low 15% tax rate. Therefore, when it comes to compounding your earnings, the potential for growth is exponentially greater than the growth on earnings outside of superannuation.

There are also tax strategies that can allow people over 55 years of age to have their superannuation tax free through the use of Transition to Retirement pensions. We strongly recommend that anyone over the age of 55 seek the services of ourselves, a qualified accountant, to discuss this matter as the benefits are huge. 

Legislation also allows for superannuation funds to borrow money and invest in residential and commercial property. There are several advantages to this strategy including the ability to “gear” your investments and make your money work harder.

This strategy is discussed on an individual basis, so please let me know if you wish to discuss further.

Remember, superannuation is only the “vehicle” or entity for investing. It is not the same as the underlying investments. The superannuation fund is mealy a tax effective entity for investing.  

To discuss the above, or to find out more about superannuation, please do not hesitate to contact me – Adi Koszta, Chartered Accountant, Shoreline Accounting & Tax, PH: (07) 3491 5888.