Montmorency | Doreen

Approaching Retirement? Here’s How to Use a Self-Managed Super Fund to Pay Zero Tax… and Still Receive a Tax Refund

Why an Self-Managed Super Fund (SMSF) strategy could be the perfect tool to leave you richer in retirement

Did you know that you can use a Self-Managed Super Fund to pay zero tax?

What’s more, if you have the correct investments and tax structure, you may even receive a large refund from the tax office as well. Of course, there is a catch: you need to be over 60 and retired to get the maximum benefit from this strategy. But if you are – or even if you’re nearing this age – it’s worth looking into this simple strategy as soon as possible as it could save you a lot of money throughout your golden years. Let me give you a quick rundown of how it works. Firstly, you’ll need to set up an SMSF. This affords you two things…

  1. A tax structure that allows you to pay zero tax on any earnings within the fund or on money drawn from the fund, for every kind of investment.

That means you can be totally tax free on all your investments, from shares to rental properties. With an SMSF you can structure it so you never have to pay tax again.

  1. Greater control over your investments so you can choose those that come with a fat tax rebate from the government

Like fully-franked dividend shares. For example, if you purchased shares in the major banks, which at the time of writing this article, have dividends of 6 percent fully franked, you could end up with the following scenario: $500,000 of shares purchases through the self-managed fund. $30,000 fully franked dividends of 6%. $12,857 imputation credit on dividends No tax is payable by the fund on the dividend income, the fund will receive a tax refund of $12,857 and the return on investment is actually 8.5% when the tax refund is included. Of course, other factors may need to be considered in completing an investment strategy for a Self-Managed Superannuation fund, such as diversification of investments.

We now offer FREE, no-obligation consultations with our qualified experienced partners

If you’d like more information on how an SMSF can be used to improve your retirement, we’re now offering FREE, no-obligation consultations at our two branches in Doreen and Montmorency. You’ll be able to sit down with us for an hour for free, and we’ll assess how an SMSF can be used in your personal situation, so you’ll know whether it’s worth it before you commit any money – so there’s no risk. Please call us on 9431 1420 for further information. Cheers! Charles Hesse

“This information has been prepared without taking into account your objectives, financial situation or needs. Because of this, you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation or needs”.

C & H Taxation & Business Consulting Services Pty Ltd (ASIC No. 1247432) ABN 86 104 424 720 is a Corporate Authorised Representative of Merit Wealth Pty Ltd ABN 89 125 557 002, Australian Financial Services Licence Number 409361.

Charles Hesse is Limited Authorised Representative 1247429 of Merit Wealth Pty Ltd    |    Australian Financial Services Licence 409361    |    ABN 89 125 557 002