Has anyone heard of using a super fund as the trustee? I was talking with a mortgage broker who, while unable to give the finer details, said that he was looking at going this way with his investments.
As I understand it, by transferring investment income into the super fund, you get taxed at just 12%. And you can move $$ in and out of the fund.The way this mortgage broker described it, it sounds like a better way to go than investing with just the corporate trust structure.
I’m going to talk with a chartered accountant, but in the meantime…does anyone else know anything about this? To be taxed at 12% sounds too good to be true. What’s the catch/catches?
thanks,
CarlinHi Carlin
That sounds strange. A super fund is really just a trust. The trustee can be a company of individuals as with a discretionary trust. The same trustee could possibly be used with both your discretionary trust and the super trust, but a super trust could not be a trustee of a trust.
I don’t think there is any way of getting money out of a superfund once you put it in there, other than selling something to the trust. And there are various rules governing this.
So this sounds rather strange, if not interesting!
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
This is something I have never heard of and if it does work the problem would be (as per Terry) getting the money, unless you are over 55.Also remembering that a super fund can not borrow.
Without doing more reserch, I think this sounds strange also.A side point, the trustee is responsible for what happens in the trust, that may make it liable for what happens in the trust. This may open the super fund up for lawsuits.
If this sounds so good why are more people not doing it?
CATA
Asset Protection Specialist
[email protected]Hi again,
I agree it sounds too good to be true. I’m meeting with this accountant on Friday so hopefully all will be explained.
cheers,
CarlinHe There
If you are looking at the finer details of a SMSF i think that is what you are asking about. Contact these guys http://www.superoutsource.com.au these guys are guru’s!!!And i am sure will know what’s the go
Later
Ruusellhttp://www.imperator.com.au. Imperator Financial is Australia’s most comprehensive consumer financial information and financial planner referral service.
http://www.onlinesuper.com.au is very good also..Barbara Smith turned her $38000 Uni Super into $600 000 in 11 years and now writes books on DIY Super..Her fund made $60 000 profit last year and only paid $95 tax.
Interesting…especially when told DIY is not worth it unless you have $150-200 000 Super to start with..
REDWING
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