00:00Superannuation is not an investment.
00:02Superannuation is a tax structure.
00:04This ETF is an investment.
00:05You can hold this ETF in a range of different tax structures.
00:08If you hold the ETF in your individual name,
00:10the distributed earnings are taxed at your marginal tax rate.
00:14Capital gains are subject to the 50% CGT discount
00:17if you've owned the asset for more than 12 months
00:20or the gains distributed from the ETF
00:21have been owned by the ETF provider for more than 12 months.
00:25If you own that ETF in a trust,
00:27the trust itself does not pay tax.
00:29The trust has to distribute all of its income
00:31out to the beneficiaries of the trust,
00:33the people down here at the bottom.
00:35Depending on the marginal tax rates of those beneficiaries,
00:38it may be more beneficial to distribute income
00:40to one person versus another.
00:42Like the individual, earnings are taxed at marginal tax rates.
00:45Capital gains are subject to the 50% CGT discount
00:48if you've owned the assets for more than 12 months.
00:52You could own that ETF in a company.
00:55A company does not have to distribute income
00:57out to the owners of that company.
01:00A company, if it's just an investment company,
01:01will pay a flat rate of tax of 30%
01:04on every dollar of earnings that it has,
01:07whether it's ordinary income or capital gains.
01:10The company does not get the 50% CGT discount.
01:13To get money out of the company,
01:14a dividend has to be paid out to their shareholders.
01:17That dividend that's paid to their shareholders
01:19will come with franking credits,
01:21which is an allowance for the tax
01:22that the company has already paid.
01:24That individual will then declare the dividend
01:26plus the franking credit in their tax return
01:29and pay tax at marginal tax rates.
01:32You could own that ETF in a superannuation fund.
01:35Superannuation fund has limits on how much money
01:37you can contribute to that super fund each year.
01:39It has limits on when you can withdraw the money
01:41from the superannuation fund.
01:43In the accumulation phase,
01:44a superannuation fund pays maximum rate of tax of 15%.
01:48Gains on assets held in a superannuation fund
01:51in the accumulation phase,
01:53assuming the asset has been owned for more than a year,
01:55are only taxed at 10%.
01:56If you are retired and can satisfy a condition of release
01:59and you can start a retirement phase pension,
02:02then all the earnings and all the capital gains
02:04and all the money that's paid out to you
02:05from your superannuation fund are tax-free.
02:08Same as the Nation.
02:09All right.
02:09All right.
02:09All right.
02:10All right.
02:11All right.
02:11So here we go.
02:11All right.
02:12All right.
02:12All right.
02:13So here we go.
02:14You can pull sample app,
02:15the token,
02:16the token,
02:17the token.
02:18All right.
02:18Right.
02:18And then you're not a business.
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