There are a number of ways to create wealth using tax effective strategies. Superannuation is still one of the most tax effective ways to build wealth and save for retirement.
A key advantage of investing in super is that your earnings are taxed at the maximum rate of just 15%, instead of at your marginal tax rate, which can be up to 47% (plus medicare) when investing outside super.
Salary sacrifice is also an effective way to minimise your taxation obligations. This strategy involves making contributions from your pre-tax salary directly into superannuation rather than receiving the money as cash. This strategy enables you to boost your retirement savings in super while paying less tax on your salaried income.
There are a number of other tax effective strategies that may be relevant depending on your circumstances. To find out more please feel welcome to contact us.
