The capital gains on a personal share portfolio are taxed at the marginal tax rate between 19% and 45%, while profits on shares invested through the super account are taxed at only 15%.
Speak with one of our advisers today to discuss which option is right for you.
If you don't want investment advice, the cheapest way is through an online broker. This means you take advantage of the benefits from both investments inside and outside of super and reduce the disadvantages at the same time.
The share registry must also be notified of this transfer within 28 days. Share index funds will invest in both poor- and well-performing companies, and may be less diversified than managed funds that invest in a range of asset classes (cash, bonds, property and shares). Account Based Pensions And Allocated Pensions, Loans From SMSF Members Or Their Families, Selling Your Business Premises To Your SMSF, SMSF Experts is a business owned by Dargan Financial, © 2020 The Trustee for the Dargan Financial Discretionary Trust, Suite 104, 3 Rider Boulevard, Rhodes NSW 2138.
Both options have advantages and disadvantages, so you will need to consider multiple factors to decide which option is best for you. For example, an index manager might offer an Australian share index fund that aims to replicate, before fees, the performance of the S&P/ASX 300 Accumulation Index. In situations where there is market volatility, there are often opportunities that could be taken advantage of; for instance, if shares are at lower prices due to market falls. There are plenty of ways to invest in shares, whether you have lots of money to throw down at once or you'd prefer to 'drip-feed' small amounts into a share fund over time. One of the basic principles of investing is to spread your risk by diversifying; if you invest all your money in just one or a handful of companies' shares, you'll be seriously affected if any suffer a major price decline or collapse. So paying tax of $15 less the credit of $30 would return a tax refund to the fund. In pension mode, a super fund would not pay tax on its capital gains or other investment income. Since a SMSF only pays a flat 15% tax rate, the difference can be refunded to the fund. 3) Transferring shares into superannuation will most likely count towards your non-concessional contribution cap. E.g. 2) You must choose a date that the transfer is to take place, properly report the true value of the share on that day, as your sale/purchase price. This is allowed under the super rules and the ATO would rarely class this behavior as share trading unless it is particularly frequent (i.e. A SMSF buys and sells shares in both large and small companies. Like any other share, you'll need to go through a stockbroker or online broker to buy ETFs, so consider broker costs in your decision. You generally need plenty of money to make direct share purchasing work, otherwise broker fees could make it uneconomical. ... AFSL 235153, RSE L0000635 is the Trustee of the ING Superannuation Fund ABN 13 355 603 448 (Fund) and the issuer of interests in the Fund. While your superannuation is built mostly from compulsory employer contributions, you also have the option to make personal voluntary contributions.