7 Jul 2023
Friday Tidbit
- Posted by Dejan Pekic BCom DipFP CFP GAICD, Senior Financial Planner
Superannuation is such an amazing taxation vehicle to use to accumulate wealth for retirement.
Income (rental, dividend and interest) is taxed at a maximum 15% and capital gains are taxed at a maximum 10% provided that the investment has been held for a minimum 12 months.
Also, you can continue to contribute into this taxation vehicle up to a total balance cap limit of $1.9m per person.
For a couple that equates to $3.8m that can be rolled over into an account based pension which will then pay no tax on income, no tax on capital gains and no tax on withdraws during the decades that you are retired.
As far as taxation vehicles go in Australia, it is in first place when you exclude the primary residence which is also advantageous because it attracts no tax on capital gains.
We have attached the superannuation contribution cap limits that apply from 1 July 2023 for both concessional contributions and non-concessional contributions.
Click for table.
If you have family, friends or colleagues that want financial advice please ask them to contact us and we will work out how best to help.
At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me or to call me on +61 2 9267 2322.
