Tag Archives: superannuation fund

ILN Today Post

How does the use of a Self-Managed Superannuation Fund assist with Wealth Planning

Subject to strict legally enforceable rules and sanctions, a self-managed superannuation fund provides a facility that is assisted by tax concessions to accumulate wealth which is locked away for retirement or death.

There are tax concessions that apply in three main ways.  A complying self-managed superannuation fund in the accumulation phase will pay tax on earnings at the special rate of 15%.  Secondly, tax concessions are awarded to contributors in that they are entitled to limited tax deductions for their contributions.  Contributors pay a flat 15% tax on contributions, although there are annual caps on how much money can be contributed in both pre-tax and post-tax dollars.  Those contributors with an adjusted taxable income of $300,000.00 or more pay 30% tax on contributions.  Thirdly, when the superannuation benefits are paid they are taxed concessionally or may even be tax free.

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