Along with this raft of legislative change, the Australian Securities and Investments Commission (ASIC) has also introduced new licensing requirements for accountants who work with and advise Self Managed Superannuation Fund (SMSF) Trustees. Only approx. 10% of accountants have complied with these changes to date.
As such if you, as many, consider your accountant would be your 1st port of call for Financial Advice, they will likely advise you, they are unable to provide the information you require & should consult a qualified Financial Adviser / Planner.
This is general advice only and you should seek expert financial advice from a qualified financial adviser before acting on any of the information covered in these topics.
The top 5 tax breaks offered to Aussie investors
1. Superannuation - highly tax effective at any age, with significant additional tax benefits from age 55 and tax free from age 60.
2. Salary sacrifice / concessional contribution to super - contributions taxed at 15% as opposed to income at marginal rates up to 49%. The tax savings represent guaranteed returns for higher income earners between 19% and 34%.
3. Franking credits - 30% tax credit provided to investors receiving dividends from Australian companies with 100% domestically taxed earnings and can be used to offset contributions tax inside super.
4. Negative gearing - the interest expense on borrowings used to purchase assets that produce assessable income, such as property and shares, provide a tax deduction potentially reducing any resulting tax liability.
5. Main Australian residence - tax free on disposal!
”It’s not that I’m so smart, it’s just that I stay with problems longer.” - Albert Einstein.