There has been a lot in the news of late regarding Superannuation. Particularly as the Government of recent times has made a number of changes.
For the great majority of taxpayers, the changes will have little impact. However, Superannuation still remains a tax effective method of saving for your retirement.
When investing, a number of people choose a Self Managed Superannuation Fund (SMSF) with a dominant investment strategy of purchasing property. A great benefit of setting up a SMSF is that you can buy any commercial and/or residential property within the fund. You can even borrow to assist the acquisition of the property (note: you cannot purchase residential property from yourself).
So why buy through your SMSF?
• It allows you to access your existing super savings towards the investment
• It reduces your tax payable on revenue/targeted profits to 15% (in some cases even 10% or 0%) compared to your personal tax rate which could be as high as 47%
• You can use your Super Guarantee Contributions from your employer to assist in the repayment of any loans/interest cost on the property.
If you or someone you know would like more information on investing through a SMSF, please contact one of our experts at HQB Chartered Accountants.
This article is compiled as a helpful guide for your private information and is subject to copyright. We suggest that you do not act solely on the basis of material contained in this article because items are of general nature only and may be liable to misinterpretation in particular circumstances. We recommend that our advice be sought before acting on any of these crucial areas.