Tax collection framework - Oasis
Our unique superannuation tax collection framework |
Providing greater tax efficiency for your client |
| Oasis offers a unique member level superannuation tax collection framework that may allow considerable savings to advisers’ clients, along with full transparency and management of the amount of tax a client pays. An individual investor or member’s tax position is calculated and collected every quarter. The collection will include potential tax benefits in the form of estimated franking credits where applicable. The Oasis tax system has the ability to provide estimated franking credits quarterly instead of annually when these benefits are normally received. This approach will enable the adviser to assist their clients in managing their tax positions more effectively. The other key benefit to both the member and the adviser is complete visibility and transparency in an environment where the regulators are demanding complete transparency in fees and process. |
Case study |
| Joe has $200,000 invested. What are the implications if tax is collected quarterly, instead of annually? |
| If Joe has $200,000 and $150,000 of it is invested in Australian shares (that distribute franking credits), then Joe may be able to reduce his effective tax rate below 15 per cent. The heart of the issue is that we calculate the tax for Joe every quarter, based on contributions he makes and any earnings that he has generated on realised gains. We also apply any deductions that can be claimed in relation to Joe’s investment, such as administration fees, adviser service fees or insurance premiums. Offsets for franking credits on Australian share investments are also applied each quarter. We apply an upfront estimated franking credit of 70 to 80 per cent of what we expect to receive at the end of the year. After taking into account these adjustments Joe’s effective tax rate may be less than 15 per cent. |
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