Sponsored content
A large part of the recent federal election was fought on changes to Australia’s complex superannuation system. While the changes will be fought actively through the parliament and may well differ substantially from their proposed form, it does appear inevitable that some of the more ‘generous’ components of super will ultimately be wound back.
Although super is likely to remain the key retirement planning vehicle for most people, it can no longer be regarded as an uncapped wealth accumulation vehicle, nor an estate planning structure for inter-generational wealth transfer.
The proposed cap on lifetime contributions has many investors asking their financial planners about tax effective alternatives to investing in super and one investment option, the insurance bond, is coming under renewed consideration.
Insurance bonds can be used for discretionary investment outside of super and there is no cap. They confer significant tax benefits for high income earners if held for 10 years or more and can even overcome super’s 17% (max) exit tax to non-dependents.
For a detailed explanation of investment bonds click here.
Austock Life is a sponsor of YieldReport