There’s no need to go to the Bahama’s… Australia has its own tax haven!
Superannuation is the most tax effective means of investment in Australia. Understanding how it can be used both before and after retirement can contribute significantly to your overall wealth plan.
Given that we all have superannuation, it is amazing and disappointing that the vast majority of Australian’s do not understand how it works or the many super strategies that can be utilized to maximize personal wealth.
The table below is a comparison between how your income is taxed both inside and outside of the superannuation environment.
As you can see, depending on your income, there is significant difference between investments held inside and outside of superannuation. And the compounding effect of these differences can be enormous when measured over time. But this is just the beginning… There are a number of strategies that can be utilised in order to take advantage of these concessions without having to wait until you retire. Once again, when assessed against the back-drop of your entire wealth plan, your superannuation funds can be structured in such a way as to maximise your personal wealth both inside and outside of the super environment.
For more information on superannuation strategies there is a whole section devoted in our ebook, available for download here Top 5 Wealth Creation Strategies for Modern Australians.
Self-Managed Super Funds
A self managed superannuation fund (SMSF) opens up strategies for improved financial growth via opportunities not available from industry or retail super funds
If you are dissatisfied with the performance of your retail or industry superannuation fund a self managed superannuation fund (SMSF) can provide the flexibility, control and investment choice over the management of your superannuation benefits.
Here at Nexus Private Brisbane, we have highly skilled and experienced wealth managers to offer advice on SMSFs and help you develop wealth creation strategies via opportunities not available within industry or retail super funds. When you establish a SMSF, you become the trustee of that fund. This means that you must manage the fund according to the trust deed and the laws and rules surrounding the operation of SMSFs. As most people don’t have thorough knowledge of what this actually involves, we can assist you to manage this responsibility.
Property in Super – a long-term, set and forget strategy
Since borrowing to invest in property within the tax friendly superannuation environment became legal in 2007, Australian SMSF balances have grown to a whopping $1.5 trillion.
One of the reasons Self Managed Super Funds (SMSFs) have become so popular in the past few years is because they allow you to borrow money to purchase property using your superannuation balance as a deposit.
With the correct financial analysis performed and an appropriate property is acquired, there should be no need for the Members to ever have to put their hand in their own pocket to subsidise this investment. Property in Super should be a long-term, set and forget strategy.
Super presents significant opportunity and responsibility
Be warned, there are many obligations and responsibilities for the Trustees of a Self Managed Super Fund and significant criminal and financial penalties may apply should these not be headed. It is important to seek professional advice from a qualified financial adviser before entering into such an arrangement.
Nexus Private are specialists in SMSF strategies and investment property acquisition.
We can assess the appropriateness of purchasing property inside Super for your specific circumstances. We can also arrange every part of the process from establishing the fund, rolling over benefits, arranging finance, sourcing the property, implementing the insurance and estate planning requirements, and performing the annual audits & tax returns. We will guide through the strategy establishment process and assist in the ongoing supervision and performance reviews.
See why portfolio growth improves substantially when coupled with the right financial structure