The most tax-effective investment vehicle outside super?
- Thread starter JIT
- Start date
Given the other investment vehicles available I cannot see how these are attractive. The company offering the insurance bond still pays 30% tax you just dont need to declare anything in your tax return. I was looking for something with a truly low effective rate.
They can be tax effective if you are on a higher than 30% tax rate but then negative gearing will have the same impact. The time frames for withdrawal are too long. Not something I've ever been interested in or ever will be.
They can be tax effective if you are on a higher than 30% tax rate but then negative gearing will have the same impact. The time frames for withdrawal are too long. Not something I've ever been interested in or ever will be.
Fair comments, 10 years is a long time.
Here's what Alan Kohler wrote about it in his book:
http://books.google.com.au/books?id...QWI4qTDBw&ved=0CFgQ6AEwBg#v=onepage&q&f=false
I can't remember the exact page though sorry.
Here's what Alan Kohler wrote about it in his book:
http://books.google.com.au/books?id...QWI4qTDBw&ved=0CFgQ6AEwBg#v=onepage&q&f=false
I can't remember the exact page though sorry.
high fees, terrible returns. pass.
if i could structure one myself with the assets i chose then yes,but that cant happen
agree its a tax effective vehicle in some circumstances after everything else is first utilised
if i could structure one myself with the assets i chose then yes,but that cant happen
agree its a tax effective vehicle in some circumstances after everything else is first utilised
Yes I am also confused. I am not aware of any changes to distribution to minors made out of a testamentary trust.
As Terry says S102AG(2)(d)(i) allows minor beneficaries to be taxed at normal adult rates on excepted trust income distributed to them. This means that minor beneficiaries are not taxed at the penalty rates that generally apply. Cannot see how the low income offset changes are going to affect S102AG but maybe something I haven't read yet.
AMP article seems to confirm that the changes to LITO wont affect distributions from testamentary trusts http://www.ampcapital.com.au/research-centre/tapin/2011-June-1_TapIn.pdf?DIRECT
As Terry says S102AG(2)(d)(i) allows minor beneficaries to be taxed at normal adult rates on excepted trust income distributed to them. This means that minor beneficiaries are not taxed at the penalty rates that generally apply. Cannot see how the low income offset changes are going to affect S102AG but maybe something I haven't read yet.
AMP article seems to confirm that the changes to LITO wont affect distributions from testamentary trusts http://www.ampcapital.com.au/research-centre/tapin/2011-June-1_TapIn.pdf?DIRECT
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