POWERED BY MOMENTUM MEDIA
Super tax benefits asset performance
Investing in Australian equities via a superannuation vehicle rather than directly returned an additional 2.4 per cent compared to high marginal tax rate investors over 10 years, according to the latest Russell Investments/ASX long-term investing report.
Russell said the difference in after-tax returns between types of investors in the same asset class highlighted opportunities in choosing the right investment structure.
Investing via superannuation would become even more attractive in the future due to the 0.5 per cent Medicare increase and the potential for higher personal tax rates, it said.
Australian shares retuned 8.9 per cent per annum gross, 9.2 per cent on an after-tax basis for the lowest marginal tax rate and 6.9 per cent for the highest marginal tax bracket. The asset class performed best in superannuation at 9.3 per cent due to the 15 per cent tax charged on super assets.
While asset performance was largely on par for investment through superannuation and investors with the lowest tax rate for other asset classes, the difference was stark for higher income earners.
Residential property returned 1.2 per cent more in super, Australian residential property 1.2 per cent, Australian listed property, 0.7 per cent and Australian fixed interest 2.0 per cent.
Super also won out on global assets, returning an extra 2.6 per cent on global fixed interest, 1.2 per cent on cash, 1.5 per cent for hedged global shares and 0.5 on per cent unhedged terms. Unhedged global listed property returned 1.4 per cent more invested via superannuation.
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
Governor Bullock took a more hawkish stance on Tuesday, raising concerns over Trump’s escalating tariffs, which sent economists in different directions with their predictions.
Equity Trustees has announced the appointment of Jocelyn Furlan to the Superannuation Limited (ETSL) and HTFS Nominees Pty Ltd (HTFS) boards, which have oversight of one of the companies’ fastest growing trustee services.
Following growing criticism of the superannuation industry’s influence on capital markets and its increasing exposure to private assets, as well as regulators’ concerns about potential risks to financial stability, ASFA has released new research pushing back on these narratives.
A US-based infrastructure specialist has welcomed the $93 billion fund as a cornerstone investor.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Global X GlobalX FANG+ ETF
33.51 3 y p.a(%)
2
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.62 3 y p.a(%)
4
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
5
Fidante Credit Suisse Global Private Equity
29.60 3 y p.a(%)
