Investors taking advantage of the recent abolition of superannuation surcharge and choosing to invest with Navigator can save thousands of dollars in taxation.
Investors taking advantage of the recent abolition of superannuation surcharge and choosing to invest with Navigator can save thousands of dollars in taxation.
The recent abolition of superannuation surcharge is expected to see a substantial rise in superannuation contributions from high-income earners.
Investors in Navigator are also able to further minimise the tax impact on their investments by accessing a superior tax structure.
Unlike some other superannuation providers, Navigator deducts the 15% contribution tax from the investors’ accounts annually – not at the time of making contributions.
By deducting investors’ contribution tax from their portfolio once a year Navigator is actually allowing investors to earn interest on their money that may have been already paid to the ATO in other funds.
According to general manager product, Tim Cobb, Navigator’s strategy to deduct the tax only when it really has to, could make a difference to investors of hundreds or even thousands of dollars over the long term.
For example:
- For an investor rolling over a $150,000 redundancy now into Navigator’s Personal Retirement Plan, the amount of contribution tax payable to the ATO will be $22,500.
- Unlike some other providers, Navigator will not deduct the contribution tax from the investor’s account until November 2006 (or later). The investor will have the whole $150,000 invested for 15 months before the contribution tax is paid to the Australian Tax Office.
- Having the $22,500 invested for an extra 15 months gives the investor more than $2000 extra in their fund than if the contribution tax was withdrawn at the time of the contribution ($2050 at an assumed investment return of 8.5% net of fees).
"The taxation treatment feature of Navigator’s Personal Retirement Plan (PRP) and the soon to be released Navigator Access Super.
"Let’s face it, none of us want to pay our tax bills early. With Navigator PRP and the new Navigator Access Super, you have the potential to keep your money working longer for you compared with some other funds. There is more to consider than just fees and investment performance. It is the net return to the investor that counts," said Tim.
This is only one of the many ways Navigator adds more value to investors’ portfolios. Other sophisticated tax optimisation strategies offered include online Capital Gains Tax (CGT) Management through the n-link adviser desktop.
With Navigator, financial advisers can help manage their clients’ CGT liability by selecting which parcel of investments to sell to minimise their CGT liability.
"Most platforms do not offer this service and simply work on the old fashioned first in first out method. Navigator understands investors want to have more control over the timing of realisation of their gains and losses to get better net returns and has designed products to meet this need.
"Navigator is really about putting the investor and their financial adviser in control. Its very sophisticated tax management abilities puts Navigator ahead of the competition," said Tim.
With more than $11 billion in funds under administration, Aviva, through its Navigator platforms specialises in creating financial solutions for all types of investors.
-ends-
For further information please contact:
Simon Morgan
Group General Manager Public Affairs
Phone: (03) 9829 8892
Mobile: 0407 966 632
Notes to editors:
- Aviva Australia is a group of two specialist financial services companies: Navigator and Norwich Union Life Australia Ltd. Portfolio Partners is the Australian funds management arm of Aviva plc. Through these companies we provide products and services in the areas of wealth creation and wealth protection for more than 300,000 customers throughout Australia.
- Globally, Aviva Australia is part of Aviva plc, the world’s fifth largest insurance group, the largest insurer in the UK and one of the top five life companies in Europe. Aviva was formed in May 2000 through the global merger of CGU plc and Norwich Union plc.
- Aviva is a leading provider of life and pensions products to Europe and has substantial businesses elsewhere around the world. Its main activities are long-term savings, fund management and general insurance. It has premium income and investment sales from continuing operations of A$78.6 billion, and more than A$645 billion of assets under management (as at 7July 2005). The group has more than 60,000 employees and 30 million customers worldwide.
- The information in this document reflects Navigator Australia Limited's ('Navigator’) understanding of existing legislation, proposed legislation, rulings etc as at the date of issue. In some cases the information has been provided to us by third parties. While it is believed the information is accurate and reliable, this is not guaranteed in any way. The information given in this document is of a general nature and has not taken into account the investment objectives, financial situation or particular needs of any particular person and it is not a substitute for professional advice. Applications to invest in a financial product issued by Navigator, or any of its related entities, must be made by completing the application form attached to the applicable Product Disclosure Statement ("PDS"). A PDS is available from Navigator or your financial adviser. Before making an investment decision on the basis of the information above, a prospective investor needs to consider, with or without the assistance of a professional adviser whether the information is appropriate in the light of their particular investment needs, objectives and financial circumstances. Aviva does not receive any remuneration in relation to the provision of information available from this press release which is of a general nature only.