Superannuation is one of the most valuable assets that gives you long term financial independence and a great peace of mind. You might already know that Superannuation is all about creating a retirement income, but it is so much more than that. Super fund protects you and your family from financial adversities. It offers you great benefits both in your working life and during retirement. So, why is Superannuation important for you? A skilled tax lawyer in Perth explains the following benefits of Super:
Less tax on your returns of investment:
When you invest your money into something, any income that you generate from it will be taxed at a marginal tax rate. One of the attractive benefits of Superannuation is that the income you earn from your Super balance is generally taxed at a relatively lower rate.
Reduced income tax:
When you opt for Superannuation, your contribution from the salary will be taxed at just 15%, rather than paying the regular income tax. After-tax contributions would also greatly help an individual, since you should be able to claim a tax deduction with the same. But remember that there is a Super contribution cap of $25,000 for every individual, regardless of their age.
Tax-free retirement income:
According to a tax law firm in Perth, when you are over 60 years of age and you retire, you must be able to access your Superannuation funds without paying any tax. You can easily withdraw your funds either as a lump sum or income stream, or both. Be sure to check with your Super provider to know what withdrawal options are available to you.
Additional contributions possible:
Employers are required to make a contribution of 10% to their Superannuation funds. However, it is possible to make arrangements if they would like to pay at a higher rate. This extra contribution will help you obtain additional Super in the future. This option may not be available with all employers, however there’s a large number of Australian employers that already help their employees earn additional Super. Ask your employer to know if you can make use of this benefit.
Obtain free advice:
Superannuation funds do offer free advice for their members. This is great, since you are receiving guidance from the experts as to how you can maximise your retirement income using different investments. It’s much better than spending all your time researching about Super by yourself. You can get the assistance of a qualified taxation lawyer in Perth to know how you can manage your individual Super and ensure that it fulfils your retirement goals.
Super is indeed worthy for anyone and everyone. With lesser tax obligations and a steady income during retirement, Superannuation helps you lead a peaceful life without doubt. Talk to a tax law firm in Perth if you have any questions.
The author is a skilled tax lawyer in Perth who is working at a recognised tax law firm for more than 4 years. In this article, he explains some of the benefits of Superannuation funds. Visit https://www.munrodoig.com.au/ to know more.