6 Sep 2021
Super, Super, Super
- Posted by Dejan Pekic BCom DipFP CFP GAICD, Senior Financial Planner
The ATO (Australian Tax office) has reported that 27 of the top 100 SMSF have a total balance of over AU$100m for the financial year ending 30 June 2019.
Superannuation continues to be the great tax minimisation opportunity for the super wealthy and the middle class in Australia.
At a maximum tax rate of 15% on earnings and unrestricted access to the money from age 65 nothing can touch superannuation as a tax minimisation vehicle to store wealth other than the primary residence which attracts a 0% tax rate on capital gains.
The reasoning for why this outcome was always going to eventuate was eloquently put forward by Kerry Packer in 1991 when he famously stated that all Australians should legally seek to minimise their tax…
“I’m not evading tax in any way shape or form. Of course I’m minimising my tax. If anybody in this country doesn’t minimise their tax they want their head read. As a government I can tell you you’re not spending it that well that we should be paying extra.’’
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