Superannuation has been designed by the government to provide a tax effective mechanism for Australians to save for their retirement. Contribution may be made by the individual (Non-Concessional) or employer/personal (Concessional).
There are significant tax incentives both in terms of contributions to superannuation and investment earnings on accumulated benefits. These include:
- The maximum taxation rate is limited to 15% on investment earnings. This can be offset by imputation credits.
- Pre-tax contributions to superannuation (concessional contributions) are taxed at a maximum of 15% as opposed to your marginal tax rate.
Self Managed Superannuation Funds
Having your own superannuation fund gives you more control over your retirement savings, as well as offering you a broader range of investments, the potential for better tax outcomes and significant flexibility. They also represent one of the most complex and technical areas of the law with regular and comprehensive legislative changes making it increasingly challenging to keep up-to-date.
Corporate Superannuation Funds
Corporate Superannuation funds are pooled investments, which are open to people working for a particular employer or corporation.