Superannuation can be one of the most effective means of wealth creation.
It is deliberately taxed at low rates to encourage holders to invest in it.
Maximum tax on income and capital gains within super is 15%.
Investing in shares that provide franked income improves the tax efficiency even further.
Currently provides asset protection.
Can provide estate planning benefits.
Personal insurance through super is a tax deductible expense to the super fund.
Whilst in the accumulation phase it does not effect your personal income tax scenario.
Assets in super are exempt from Centrelink Income and Assets tests up to age 65.
Forced saving – you cannot access your funds till you retire after a certain age.
Allows for a number of choices at retirement with regards to provision of income in retirement.
Access to the funds, prior to retirement, is extremely difficult.
Government legislative changes can have an adverse effect on the current benefits.
Ability to contribute is limited to people in certain situations.
Contact LIPS to discuss your needs