Superannuation is an investment platform that has tax benefits for the investor. Superannuation taxes all income and growth at a rate of 15% (based on the 2010-2011 financial year) when it meets the criteria set out in legislation. This means that it can be a very beneficial form of tax saving for those who earn above $37,000 per annum. A Sydney Financial Planner can help you consider the benefits of superannuation.
Under specific conditions, extra contributions can be made by the superannuation holder. However, there are substantial penalties for those who unlawfully access superannuation early or do not comply with the strict laws regarding investment into superannuation. Furthermore, due to the difficulty of accessing your superannuation funds prior to retiring, it is an ideal tool for retirement saving.
Another form of superannuation fund that is gradually rising in Australia is the self managed super fund, often referred to as SMSFs. This form allows you to have a greater say in how the fund is invested and may have a wider array of investment options including direct property, art and even vintage cars. The benefits (including tax benefits) of self managed super funds or SMSFs are often good. However, setting up and operating an SMSF may prove to be difficult. The law provides a range of stringent and austere requirements that must be met. A breach of the law can lead to heavy and severe repercussions. It is therefore vital that you consult a Chartered Accountant or Lawyer before you embark on such a path.
Our Financial Advisors work in cohort with Chartered Accountants, Tax and SMSF Lawyers and Mortgage Brokers. With a multi-disciplinary team offering a total service, Navado provides its clients with a unique chance to take advantage of expertise and skill across an array of professional areas. Call us today and arrange a meeting with our professionals. For more information, explore our website or contact our office on (02) 9233 4048.
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