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Superannuation can be one of the most effective ways of wealth creation.

Advantages:

• 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 test 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.

Disadvantages:

• Access to the funds prior to retirement is extremely difficult.
• Government legislation changes can have an adverse effect on the current benefits.
• Ability to contribute is limited to people in certain situations.

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