Move quickly and you could make use of the best Government handout you’ll see in a long time – a tax-effective savings scheme that gives you tax-free payout. What’s the catch? “You need to start now. And you can’t access the money tax-free until you’re 60,” said Navigator Technical Marketing Manager Martin Breckon. “However, the proposed changes to superannuation savings in the May Budget could add real muscle to your future savings and your future lifestyle.” The Government’s proposal would allow the over-60s to withdraw their pre-taxed super as a tax-free lump sum to spend as they wish, or even better, a tax free income stream where even the investment earnings are tax free.
Move quickly and you could make use of the best Government handout you’ll see in a long time – a tax-effective savings scheme that gives you tax-free payout.
What’s the catch?
“You need to start now. And you can’t access the money tax-free until you’re 60,” said Navigator Technical Marketing Manager Martin Breckon.
“However, the proposed changes to superannuation savings in the May Budget could add real muscle to your future savings and your future lifestyle.”
The Government’s proposal would allow the over-60s to withdraw their pre-taxed super as a tax-free lump sum to spend as they wish, or even better, a tax free income stream where even the investment earnings are tax free.
“Pay off the house, take that overseas trip, update the car, anything is possible when you’re past 60 and you have the super to spend and now it will cost even less, because you will pay no tax,” said Martin.
He added: “The message from Canberra is obvious – boost your super as much as you can and as soon as you can. The changes are only as good as the use you put them to.”
Navigator offers ways to optimise super contributions with three products:
- Navigator Personal Retirement Plan – Superannuation Service
- Navigator Access Super
- Navigator Super Solutions Employer Service
Navigator offers considerable tax benefits during the accumulation phase. For example:
- contributions can be split between spouses from 1 July 2006, offering tax-advantaged savings of up to $20,000 under the current environment;
- for certain products, tax on contributions and earnings is remitted to the tax office after the end of the financial year, which means your money has the opportunity to work harder, for longer;
- Navigator intends to take advantage of anti-detriment provisions across all products for death benefits paid from 1 July 2006, in addition to products currently already provided for. This means that in the event of death, certain beneficiaries could receive more than simply the account balance;
- accounts with Navigator Personal Retirement Plan and Navigator Access Super can later be shifted to pension phase without incurring fees, charges or taxes; and
- the convenience of a simplified system of tax-effective wealth protection.
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 sixth 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$77.6 billion, and more than A$683.9 billion of assets under management (as at 9 January 2006). The group has approximately 59,000 employees and 30 million customers worldwide.
- The information in this document reflects Navigator Australia Limited's ('Navigator') ABN 45 006 302 987 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. A PDS is available from NULIS or your financial adviser. Applications to invest in investment product(s) through the investor directed portfolio service ("IDPS"), operated by Navigator, must be made by completing the application form attached to the applicable IDPS Guide Offer Document and Investment Allocation Authority. 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.