Super is a great little tax dodge we should all be into. Two...

Super is a great little tax dodge we should all be into. Two types, work super which you fill up with 12% unpaid tax earnings letting it compound up over many years on interest tax free but on retirement putting into pension mode you have to hand over 15% of its total value to the tax man. Any earnings on what’s left yes it’s totally tax free. The other is SMSF a little bit different but anyone can open one but you have to be working and earning an income. You can deposit $180,000 of investments per year from tax payed earnings into the accumulation phase and any earnings made from that is taxed at a flat 15% rate. However the lousy money grubbing labour mob have changed that to 30% if the asset exceeds 3 mil. If you sell the asset there is a flat 10% capital gains tax you must pay, not bad when outside the fund you could be up to near 50% tax if the asset value skyrockets. In pension mode any earnings is tax free and there is the great franking credit benefits (labour again have persistently tried to get rid of this) but there is a catch you have a minimum withdrawal rate rule set by the tax man 7% if you are over 70. Not good if you enter the pension mode and it’s not earning income.