What Are the 7 Tax-Free Investments in Australia? Superannuation, Bonds & More
Maximizing Returns: Tax-Efficient Investment Options in Australia In Australia, several tax-efficient and tax-free investment options are available to maximize returns and minimize tax liabilities: Superannuation (Super) is one of the most tax-effective investments, with contributions taxed at 15% and earnings taxed at 15% on income and 10% on capital gains. Withdrawals after age 60 are generally tax-free, making it ideal for long-term retirement savings. Investment Bonds offer a tax-effective alternative to traditional investments, taxed internally at 30%. After 10 years, earnings become tax-free . Negatively Geared Properties allow investors to deduct property-related expenses from taxable income, reducing tax liabilities while aiming for long-term capital growth. Early Stage Innovation Companies (ESICs) provide tax exemptions on capital gains for shares held over a year, plus a 20% tax offset for qualifying investments . ETFs and Shares offering franked dividends are popular, as f...