I will use a figure of capital gain of $200,000 for this example outside of super, with a 50% discount that is $100,000 added to my taxable income at the top rate the tax bill on this item is $45,000
in super the same gain of $200,000 with 33% discount, lets say that is $140,000 taxable in the superfund at 15% tax bill for this item is $21,000
so the cost to me outside of super is an extra $24,000
I dont mind that extra cost, for the freedom to then spend the net gain as I like....in fact I can waste it, I do not need to reinvest it....or I can buy another property, and negatively gear it, no extra scrutiny, or additional trust required, or beholden to the banks, or the ATO etc or all the additional red tape one is subject to inside of super...
I have no worries about the government changing the goal posts and the rules, or the union boys taking the whole lot and putting it under the umbrella of an industry fund...
Nor do I want to be subjected to receiving a pension from a fund or anywhere else. I am happy to manage my own investments totally under my control. I currently receive rental income from both residential and commercial property which forms a regular monthly income, similar to a pension or annuity.
Selling 5 investments with an average gain as above, totals an extra $120,000 in tax over a 5 or 10 year period.
For the non average punter in a superfund, there could be annual fees of around $6000- $10,000 per annum, so inside super over the same period, there is an extra maybe $50,000 in fees, which I do not have. So if I compare the two on that basis, I might be only $70,000 or so worse off. I have done the sums, and that is a cost I am prepared to wear, considering the greater scheme of things.
ps I am concentrating on other interests, so my time on hc will be reduced to a bare minimum in the future. cheers
