Funds Management

Gresham has a long history of fund management across varying investment classes.  Gresham’s funds have adapted to address investor need and market opportunity.  Gresham’s current funds are focused on efficient capital provision to the property and real estate sector. 

Gresham Superannuation Solution

Gresham Superannuation Solution

Gresham has developed an innovative financing product that may help maximise the value of your superannuation before the upcoming 1st July 2017 tax changes are implemented

This may be your last chance to make a significant contribution to your superannuation account

As a part of the Superannuation reforms that were announced post the 2016 budget, a non-concessional contribution cap comes into effect as of 1 July 2017.  From that date, individuals with a total super balance of $1.6 million or more will no longer be eligible to make any further non-concessional contributions. 

What does this mean? 

Post the 30 June 2017 the only contributions persons with total super balances over $1.6 million will be able to make are $25,000/year concessional contribution. Persons with total super balances of less than $1.6 million will only be able to make non-concessional contributions to the extent these contributions do not take the total super balance above $1.6 million.

The Gresham Superannuation Solution can help you to contribute to your superannuation account before the 1 July 2017 changes are implemented.

Taxation facts

  • Superannuation accounts pay 15% on ordinary income tax, 10% on capital gain tax and can receive a cash rebate
    for surplus franking credits. In retirement phase, the first $1.6m of funds in superannuation accounts will normally
    be at 0% tax and no tax is paid on pension payments for those aged 60 or more.
  • The top personal tax rate is currently 49%* on ordinary income and 24.5% on capital gains (reducing to 47% and 23.5% respectively from 1 July 2017, subject to the 2017 Budget being passed).
  • Companies pay 30% tax on both ordinary unfranked income and capital gains.

Overview of Gresham Superannuation Solution

The Gresham Superannuation Solution is an innovative financing product that may help you contribute $540,000 to your superannuation account before the 1 July 2017 changes are implemented.

Benefits

  • Allows you to contribute $540,000 to your super without providing the money upfront
  • Maximise the amount of your investments that are in your Superannuation
  • Easy to implement
  • ATO has provided confirmation of compliance with relevant legislation
  • Based on our assumptions, over 15 to 20 years, this product is estimated to provide a tax benefit of
    up to ~$245k to ~$485k individuals net of fees. But remember this is a forecast only, it may be
    affected by departures from our assumptions or other uncertainties and the forecast may be materially
    different to the results actually achieved

Dependent on individual circumstances; the ~$245k to ~$485k is based on the following assumptions:

a. Individual / SMSF:
Marginal Tax Rate: 47% (increasing to 47.5% on 1 July 2019), Annual Investable Amount: $125,407, Current Super Balance: $1,600,000, Assumed   SMSF Return: 7.5%

b. Loan:
Annual Interest Rate: 6.0%, Loan Amount: $540,000, Upfront Fee $3,000, Loan Term: 5 years, Annual Loan Payment (P+I): $125,407

c.  Gross Investment Return on Assets Acquired: 6.0%, Establishment Fee: $17,000 plus GST, Annual Management Fee: 0.85% plus GST

d. ~$245k based on 15 years in top tax bracket

e. ~$485k based on 20 years in top tax bracket

Case Studies

Case Study 1

Case Study 2

Contact

For more information email us at gss@gresham.com.au or call (02) 9221 5133.

As with all new products, it is important that you read the Information Memorandum for the Gresham product and understand the detailed loan and unit structure. 

The above provides you with information to help you consider your superannuation options.  It does not constitute general or personal advice in relation to superannuation nor contain a recommendation to contribute to superannuation.  Before taking action you should consider whether the Gresham Superannuation Solution is appropriate for you having regard to your own financial situation and needs and consult with a financial adviser.

 *45% marginal rate + 2% Medicare levy + 2% budget repair levy

Link to ATO Superannuation Rule Changes

 

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