Opez Tailored Superannuation

The Superannuation Maze

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Running your own Tailored Super Fund

Think of your Tailored Fund as a customised car - you are behind the wheel, choosing the destination and how you get there. But like all drivers, you need to know the road rules, and how to navigate them safely.  Opez helps you understand the basics, and takes care of the annual maintenance of your 'vehicle', leaving you to focus on how to accelerate your investments.

Can your family join your Fund?

Yes, they can, but there are some rules around maximum number of members (currently a limit of four), and how the trusteeship needs to be structured.

What assets can your own Fund have?

The rules don't prescribe what assets a Fund can or cannot have - they do however regulate who they are acquired from, and how the assets are used.  So your Tailored Fund can hold any asset that you personally can own (cash, shares, property, managed Funds, collectibles and so on).

Transferring your existing assets into your Fund

It is possible to transfer some existing assets you or a related entity currently own into your Tailored Fund - again subject to some rules. The assets are limited to Listed securities, Business Real Property, and Widely Held Unit Trusts. Take care - ask us before you transfer assets in, and ensure they do in fact meet one of the exceptions.

What happens to your super Fund when you die?

This is a complex area, and most people assume (incorrectly) that their Wills govern where their super benefits are paid.  Sadly, this is not the case - and family can be disappointed when death benefits not only flow to unintended beneficiaries, but also attract lump sum tax. Contact us to ensure your benefits are paid in accordance with your wishes, and in the most tax effective way.

When you can access your super monies?

For some people, it's sooner than you think - ask us about Transition to Retirement opportunities, Account Based Pensions & Lump Sums. Again - there are more rules - but Opez will help navigate the super maze, and advise you on the option that will meet your needs.

How does super save me tax?

It's all in the tax rates. Consider this - you pay various rates of tax on your income, up to the top tax rate of 45%.  A complying Fund (i.e. one that has met, and continues to meet, all the 'rules') pays a maximum of 15% tax on its income. By using strategies such as salary packaging, you can direct some of your income that would otherwise pay top tax dollar, into a Fund that only pays 15% tax. 

Does your super Fund pay tax?

Yes and No! It depends on what 'phase' the Fund is in. In accumulation phase, it pays a top rate of 15%, 10% on some eligible capital gains, and if fully in pension mode, then 0%. Opez can help you minimise the tax in your Tailored Fund.

Can your Fund borrow?

Generally - no, unless it meets some complex rules. This is a new emerging area, easy to get it wrong, and you must seek expert advice. Call us if you are considering acquiring a 'lumpy' asset such as property, and we can guide you through the issues.

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Super maze