Superannuation & SMSF
What is superannuation?
Superannuation & SMSF is a great way to set money aside for retirement, money that lets you have an enjoyable life after you leave the workforce.
The money comes from contributions made into your super fund by your employer and ideally, topped up by your own money.
At Peacheys Investment Services Pty Ltd, we can give you expert advice on how to maximise your superannuation in the following 6 areas:
Tax benefits of superannuation
When you’re investing money for retirement, there are several tax advantages using SMSF.
- Lower tax on income
- Lower tax on capital gains
- Lower, or no tax on lump sum payments
Cash flow benefits
Whilst getting older can be daunting, there certainly can be some benefits! The Income Tax Act allows for “more senior” business owners to lower their wages allowing extra cash flow through a mechanism called the Transition to Retirement Pension. This allows a portion of income to be earned from your superannuation fund with considerable tax benefits.
Employer superannuation (SGC)
Most people are entitled to compulsory super contributions from their employer. From 1st of July 2014, these super guarantee contributions must be at least 9.50% of your ordinary earnings, up to the ‘maximum contribution base’.
Insurance in super
There are a number benefits of having insurance within your super fund:
- Premiums are normally deducted from your super contributions, meaning you don’t have to pay for the premiums through your take home pay.
- There are various concessions available when making super contributions, which makes holding insurance inside your superannuation a very tax effective move.
- Insurance has become more competitive and automatic acceptance limits have increased.
Death with super
It is extremely important that you consider how and to whom you will leave your superannuation death benefits to. A nomination of a death benefit can only be made to dependants or a legal representative. We can assist you with nominating a beneficiary and allocating a percentage of your benefit to be paid to each person nominated.
Like other Super funds, Self-Managed Super Funds (SMSF) are a way of saving for your retirement. The difference is that a SMSF’s allows you to invest in the manner you choose, giving you greater control over your investments. We offer professional advice on SMSF, as opting to go down this path can be a major financial decision.