Advantages of Self-Managed Superannuation
Managing your own superannuation has become extremely popular in Australia and there are many reasons why. Superannuation regulations are very complex, but a basic summary of the main advantages would include:
- Significant tax concessions
- Tax-deductible contributions and pre-retirement earnings within the fund are taxed at 15%
- Once you have retired or turned 65 all earnings within the fund are tax-free
- Once you have turned 60 all drawings from the fund are tax-free
- The ability to borrow within your self-managed superfund to invest and access potentially greater returns. Many people utilise this leverage concession to invest in property
- Greater control over your investment portfolio
- Greater control over your retirement income
- Can be more economical than paying a public superfund percentage fees for larger accounts
However, there are some disadvantages and a self-managed superannuation fund may not be right for your circumstances.
At KJB Accountants & Business Advisors we can provide all the information you need to determine whether self-managed superannuation would be beneficial for you.