Superannuation
Benefits of Superannuation
By putting in place a suitable superannuation strategy you can increase the likelihood of achieving your goals in retirement. Superannuation is a tax-effective means of saving as you receive tax deductions if you are self employed, there are means tested rebates if you are an employee and favourable taxation (up to a maximum of 15 per cent) on earnings and capital gains of superannuation funds which is lower than most personal tax rates.
Superannuation Strategies
Self Managed Superannuation Funds (SMSF)
The benefit of SMSFs is that you are able to construct an investment portfolio that is consistent with your risk profile while having the flexibility to select from a wide variety of wholesale managed investments, direct equities and direct property.
Undeducted Contributions
These consist of contributions which are paid into a superannuation fund where no deduction has been allowed for the contributions, for example contributions which are made out of after tax income. This component is not counted for resonable benefit limit purposes and no further tax is payable.
Superannuation Splitting
Splitting your superannuation contributions will give you and your spouse more choices as to how to prepare for your retirement and also result in income tax saving in retirement. It also allows both of you to have access to two reasonable benefit limits.
Government Co-Contribution
If you are eligible and make personal superannuation contributions, the Government will match your contribution with a co-contribution up to 150%
Spouse Contributions
An eligible spouse contribution is simply where a person makes a superannuation contribution on behalf of their spouse. By splitting your income, you can effectively reduce the amount of tax payable in retirement.