Investing under a Trust

• Once you are able to justify the costs of having a Trust/Company which, if solely for investment purposes, is $1-2k per year in administrative fees, then it is a viable option to consider. A question to ask here is if the Tax Benefits will outweigh the costs, or will the Asset protection that a Trust/Company provides be worth the additional administrative costs? 
• For investments in Trusts, you will need to distribute the profits to an individual to be eligible for the 50% discount on Capital Gain Tax (CGT) for assets held longer than 12 months, whereas for short term, CGT’s and dividends can be distributed to the trustee company and tax can be paid at the company rate.

Investing with an SMSF

• A Self Managed Superfund provides you with the ability to have control over your retirement and make the investment decisions you wish. With that in mind, you will need a $250k balance in superannuation between yourself and any other parties you wish to include in the SMSF.
  
• There are tax benefits to making additional contributions to your super each year, and with that, you will need to get specific advice. However, generally speaking, you are able to claim up to $25k as a concessional contribution less any superannuation your employee has already paid for you during the year. 
• You might have identified that your superannuation has not been performing to the level you had wished, and with that in mind, you may want to take control of your investment decisions. We support clients to manage the compliance of the SMSF each year and work with clients to ensure they successfully navigate through the strict rules of the SMSF.
• We also work with specialists to ensure that you have the appropriate insurance in place and if you need direct support with your investment decisions.