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23:33
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Originally posted by poolboy:
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Legally reducing your tax is a different proposition for everyone as a lot of variables can impact the outcome. Some of these include, Age to Retirement, Marital Status and Earning status (ie who gets paid the most), age and number of children, how much you expect to earn from your investments and timeframe. Too often people ignore proper tax planning only to pay a visit to the Accountant to be told they have a large capital gains tax bill and no way of offsetting it. The best solution is to take advice from professionals that can provide you with tax effective solutions BEFORE you commence investing.
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A good summary poolboy, but I would like to suggest a small correction and further elaboration regarding the tax on an SMSF. The rate of tax is only 0% on income recieved from assets (or more commonly the proprtion of assets) supporting retirement phase pensions. This means that even if you are over 60 and retired the SMSF will still be taxed at normal rates unless you start paying a pension. With the 0% tax rate only acheivable if the entirety of the SMSF is in pension mode. Also noting that there is a $1.6M lifetime cap (indexed) per member that they can transfer from accumulation phase to pension phase.
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