Tax Australia and costs for DIY Super...Tax Australia... Tax and costs are one of the biggest considerations for people when they are looking to start a DIY Super Fund in Australia.
First Lets Look at Costs and know much is enough...There are many different answers to the question of how much is enough, when it come to setting up a DIY Fund. The reason for this is that the people who answer the question do so from their point of view. Almost all Australian Tax Accountants and Financial Advisors will tell you that you need to have at least $100k in a super fund before you get DIY Super. See here about choosing an Austrlian Tax Accountant or CPA. Why is this?Simple their fees and charges. In a normal Australian retial fund your charge is about 3%, plus imput tax australia of 15% to 30%. If you fund is $100,000 a charge of 3% is $3,000. The fees for a good accoutant and fiancial advisor, in Australia, are close to that. $1,400 for the audit and accountant fees and about $1,600 for quarterly meetings with a FA and a yearly review.That is why there is a notion that you need about $100,000 before you go DIY Super in Australia. However the fact is that "the majority of new self managed funds start off with well below $100,000". Ian Ross, Compliance Manger, SMFS Australian Tax Office, Western Australia. Why is this?Well a lot of people know that if they start a fund of their own they will put more money into it because they control it themselves. Also a lot of people start a SMSF to buy a place of business. They are often Self Employed and use a DIY Fund of minimise tax australia and increase wealth. For more detials see Action Guide on setting up a DIY Fund in Australia OK.. So that covers a bit about Costs but how about tax austrlia.Well Australian law on Super tax is quite complex because it is changing fast and the law is not retrospective. Therefore, if you do somethng now it might become illegal later, but because you did it now you may be able to carry on. This is why you should look to have good experts if you can. Or use all the stuff on the Australian Tas Office Super Site here Tax Australia .
OK So that covers a bit about Costs but how about taxes. Well Australian law on Super is quite complex because it is changing fast and the law is not retrospective. Therefore if you do somethng now it might become illegal later, but because you did it now you may be able to carry on. This is why you should look to have good experts if you can. Or use all the stuff on the ATO Super Site. There are a number of basic rules with DIY Super versus normal Retial funds. Here is a table of Australian Tax rates for maximum aged based limits.
Now you will be pay a 15% tax on this amount going in. But you may also be pay an additional 15% more tax australia if your salary, both inside and outside Australia, goes about a certian amount, shown in the table below. There are ways to minimise this extra tax, first and formost by reducing your salary, if you have enough cash to do so, with negative gearing, instalment warrants , imputation credits and tax effective schemes . Here is the table for the Superannuation contributions surcharge tax australia adjusted taxable income. Which means how much you can earn before you pay an extra 15% on the amount you put into your fund. This is on top of the 15% tax australia that you get stuck with.
As always you should seek the best tax advice you can get and willingly pay for it. Go to home A List of resources for Australian Super Collectable CPA Australia Depriciation Finacial Advisor Imputation Credits Instalment Warrants Joint Venture with Super Super Annuation Super News Tax and Super Tax Write Offs Unit Trusts Unit Trusts in Australia Women and Super SuperWatch Trust Deeds
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