OK I realise I might have to shout a little to get people’s attention when it comes to tax and investing but while watching the recent media hype and political spat about Malcolm Turnbull investing in the Cayman Islands I did have to laugh to myself. Most Australians do not need to go that far to secure a good deal when it comes to their tax affairs.
Do you understand that someone over the age of 60 here in Australia can have an account with the following characteristics most sought after in tax havens?
- Tax free income from investments
- Non-reportable Income – no need to inform the tax man of your income
- No Capital Gains Tax on sale of assets
I can see your eyes light up! So where can you go to organise these facilities?
YOUR SUPERANNUATION ACCOUNT CAN BECOME A TAX FREE HAVEN!
Why am I shouting? Because so many people are not making use of the tax and superannuation strategies that could put them in the exact same tax-advantaged position that a multi-millionaire has to use islands in the Pacific Ocean or Caribbean sea to achieve.
After age 56 you can start a Transition to Retirement Pension and the earnings in your fund can be tax free. From 56-59 you may some tax on the income (4%) you have to drawdown from the pension but from 60 onwards it is tax free and you don’t even have to report it on your tax return.
Don’t think it’s all too hard or it’s a scam or it seems to hard or only available to SMSF members . It is really easy and as long as you are over 56 you are 95% likely to benefit from this strategy. give me or your own adviser 5 minutes to run your figures and your will see the worthwhile savings.
I believe for most people they can save enough for 2-4 overseas holidays extra in retirement and often much more.
To learn more about superannuation Pensions here are some of my previous articles:
Understanding transition to retirement pensions
Making the most of the Transition to Retirement Pension over age 59
Aged 59 – 64 and not on a Transition to Retirement Pension – SHAME ON YOU!
How do I start a Pension in a SMSF
55 No Longer Target Age for Transition to Retirement Pension Strategy
Don’t think your balance is too low or too high. I have clients with $50,000 to $2,500,000 in this strategy that is 100% legal. even the ATO have a video on pensions
If you want to add the ultimate in flexibility then look a the use of a Self Managed Superannuation Fund ( SMSF ) to allow access to a greater range of investment options for your pension, with the flexibility you need and the control you want!
Are you looking for an advisor that will keep you up to date and provide guidance and tips like in this blog? Then why now contact me at our Castle Hill or Windsor office in Northwest Sydney to arrange a one on one consultation. Just click the Schedule Now button up on the left to find the appointment options.
Liam Shorte B.Bus SSA™ AFP
Financial Planner & SMSF Specialist Advisor™
Tel: 02 98941844, Mobile: 0413 936 299
PO Box 6002 BHBC, Baulkham Hills NSW 2153
5/15 Terminus St. Castle Hill NSW 2154
Corporate Authorised Representative of Magnitude Group Pty Ltd ABN 54 086 266 202, AFSL 221557
This information has been prepared without taking account of your objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation and needs. This website provides an overview or summary only and it should not be considered a comprehensive statement on any matter or relied upon as such.
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