Australian government set the superannuation rules that help investment be more tax-effective. You can pour extra funds into your superannuation rather than into your mortgage may be a more sensible strategy for some people, particularly if you are nearing retirement.
From 1 July 2007, when you can access your taxed super benefits at age 60 or over the benefit will be tax-free whether you take it as an income or lump sum. This means you can boost your superannuation contributions now to capitalise on the ongoing tax concessions available on your super investments. Then, when you retire you may be able to use some of your accumulated superannuation benefits to pay off the balance of your mortgage.
Real Estate Development Made Easy.
Learn Real Estate Development From Billion Dollar Developer & Coach With CB Sales in 106 Countries Page 1 Google, Yahoo, Msn. Only E-books in the World on these Subjects. Click Here!
To benefit from this strategy you will generally need to have an interest-only mortgage arrangement. If you are only paying interest on the outstanding loan then you don’t make any capital repayments until the end of the loan term. This has the effect of reducing your ongoing mortgage cash flow commitment so you can contribute more to superannuation.
By foregoing your pre-tax salary to make concessional super contributions under a salary sacrifice arrangement, your super contributions are only taxed at 15%. This contrasts to receiving the amount as salary which is taxed at your marginal tax rates. Your investment earnings within super are also only taxed at 15% in the fund.
Creative Real Estate System w Complete Tools for Todays Real Estate!
Don't get trapped in the " one size fits all " mentality to real estate investing. Profit from today's housing crisis while you still can. High Satisfaction. Click Here!
When you retire under this strategy you can access your superannuation benefits tax-free and be ‘mortgage free’ at the same time once the outstanding loan is repaid.
Please speak with your financial advisor or accountant on the implications of this strategy. If required, I am happy to discuss your ability to alter your lending arrangements to benefit both you and your business.
No comments:
Post a Comment