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Today is
Superannuation
[ 13 Jan 2004 ]
Paving the way for your future
Superannuation is simply money saved during your working life to be used to fund an income stream in retirement. The important difference between superannuation and other forms of investment is the tax treatment. Superannuation investment earnings are taxed at a maximum rate of 15%, which for most of us is a lower rate of tax than we would pay on an equivalent investment in a non-superannuation environment.
In addition the government has introduced:
- Tax incentives to encourage companies and individuals (self-employed) to contribute including contributions for a non-working spouse.
- Concessional rates of tax when the benefits are withdrawn.
Because of the tax treatment superannuation receives, it is the best way for most of us to save for retirement.
There are numerous superannuation arrangements and products available of which Cochrane Shaw will help you analyse the following:
- Product suitability.
- Difference between types of funds originating from life offices, banks and unit trust managers.
- Asset allocation - investment strategy.
- Group life insurance cover.
- Allocated pensions.
- Roll-over funds.
There are many complexities associated with superannuation planning today.
The minimum contribution an employer needs to make for each eligible employee is:
The charge percentage is 9% from 1 July 2002 and onwards.
Many changes are currently occuring in the area of superannuation.
For further information about superannuation visit the website of the Australian Taxation Office |
