Understanding your superannuation

Superannuation is still one of the of the best ways to accumulate wealth and save for your retirement.

This is because Investing in super attracts lower tax rate as earnings are taxed at a maximum rate of 15%.

A lower tax rate means your money can grow faster than investments that are taxed at a higher rate.

Depending on your circumstances, there may be some other great incentives – like claiming a tax deduction for your own contributions or receiving a co-contribution from the Government.

Also, in the 2006 Federal Budget, the Government proposed from 1 July 2007, all benefits received from a taxed super fund at age 60 or over will be tax-free.

However, to get the most out of superannuation you need to be ‘super smart’.

You need to understand how the rules work and use them to your advantage.

You also have to keep up with the latest rule changes.  

Heres where Insight Investment Services can help look at your personal situation and find the right strategy to suit your goals.

The following tables shown below show some of the changes being made to Super from the 01/07/07.