Australia’s fastest growing super strategy
A self-managed superannuation fund (SMSF) is a trust where money and investments are held and managed on behalf of its members. The fund’s purpose is to provide benefits to its members on retirement or death.
Think of it as a collective pool where each member is contributing to filling the tank with his/her contributions. Together, this metaphorical pool collects a greater amount of interest over time, so when it’s time to cash out, you’re left with more in the kitty.
The growth in SMSFs over the past decade has been quite remarkable. In 1998, 12% of Australia’s superannuation was held in SMSFs. This is compared with 32% SMSF contributors today.
How you can invest through your SMSF
Fact: Did you know you would need approximately $1M in your super fund if you want to live off around $50K each year?
Self-Managed Super Fund Benefits
- No capital gains tax or income tax after you’re 60 years old.
- Your super fund is protected from bankruptcy and other financial difficulties offering the ultimate credit protection.
- Rental income on any property is taxed at only 15% compared to 37% outside of super.
- You do not need to pay out of your pocket to fund any properties bought in super.
- All SG contributions and salary sacrifices are taxed at 15% instead of 37.
- You are able to pay off any properties bought in half the time saving yourself hundreds of thousands of dollars in interest payments.
- At the moment, if you qualify, the government are co-contributing towards your wealth creation within your super fund.
- Business owners can get an extra $1.25 million dollars worth of capital gains tax free income when and if you sell your business in the right way.
For more information on establishing a Self-Managed Super Fund, or to book an obligation-free, complimentary financial health check with Positive Financial Services Director, George Nori, please click button below.