Spicers answer to higher tax rates
Financial planning and funds management firm Spicers plan to use the Government's change in tax rates as a lever to enter the corporate market.
Monday, January 10th 2000, 12:00AM
Head of Financial Advice Aaron Hing says the government's move to increase the top tax rate to 39 cents for those earning more than $60,000 is a welcome incentive for high income earners to save.
By having the employer pay income over $60,000 into a registered super fund which provides for tax at 33 cents employees will be able to elude the extra 6 cent tax impost.
However, Hing questions whether the savings industry has in place the solutions to met employer and employee demands.
"The current range of superannuation master trusts and schemes will not do the job. Employers need to look for an alternative that is not built around a traditional super scheme, but around the multiple needs of savers and employers. This means providing both super scheme and unit trust options."
Hing says Spicers approach to the issue is to produce a wholesale version of its direct product Spicers Connect.
The result, Corporate Solutions, allows investors to select specific funds from a menu of choices.
Hing says many of the current offerings in the corporate market are too limited for choice.
"Today's investor is more sophisticated and will demand more sophisticated solutions. They will want a wide range of investment options tax advantages, flexibility and portability," he says.
| « Weekly briefs | Get your tax questions answered online » |
Special Offers
Commenting is closed
|
|
Printable version |
|
Email to a friend |
