05 Dec Tax advantages inside your super
A Review of Tax Advantages.
As many of you already know, your SMSF can offer significant tax advantages when it comes to holding assets inside superannuation. This week we wanted to revisit some of these advantages:
- Possible Tax Deductions for contributions made by self-employed members, or members who earn substantial income from non-employment sources. These deductions can be used to offset personal tax liabilities which may arise from selling an investment asset, or transferring listed shares or business real property into your SMSF.
- Salary Sacrifice amounts, and contributions from your employer, are taxed at a concessional rates of 15%, up to the concessional caps
- A tax rebate and/or Government co-contribution for contributions made on behalf of, or by, low income earning spouses.
- Maximum 15% tax on investment earnings compared with tax rates outside of super, which can be up to 46.5%.
- 10% tax for any Capital Gains on assets held within the fund for 12 months or more, while in accumulation phase or tax free in pension phase.
Being a SMSF trustee can be a huge benefit when it comes to the flexibility you have available to manage the tax outcome of your investments. For example you can buy and hold investment assets while you are accumulating your super and then sell them in the pension phase, when you retire.
Just one reason why Super is Sexy!