Aviva’s Navigator reduces tax bite on super
Budget super changes and contributions to super are the major focus in the industry at the moment – but Aviva ’s Navigator platform is also focussing on managing the money effectively once it is contributed.
Superannuation and pensions are tax effective in comparison to other alternatives but tax effective depends on which platform and investment funds one chooses, according to Aviva.
A recent study by Aviva Research has highlighted the relative tax effectiveness of Australian equity investment funds available on the Navigator platform determined by five factors - franking levels, stock turnover, capital gains distributed, net growth in unit balances and the existence of gearing.
Conducted for the second year running this study looks beyond risk and return and focuses on the key drivers of tax effectiveness.
BT topped the study after a good showing in 2005 while Perpetual’s Geared Fund and Vanguard have also demonstrated steady and consistent performance across the five areas.
Noticeably, Aberdeen’s Financials Fund dropped back from the top of the pack as a result of lower franking levels, increased capital distributions and redemptions.
According to Aviva, just because you choose a tax-effective fund it does not necessarily mean you will get a tax effective result. Some platforms do little to help manage tax issues for investors. Aviva recognises that proactively managing tax liabilities can mean extra money for the individual investor. It is a pity to see so much focus on before tax rather than after tax returns.
Aviva’s Navigator platform provides a variety of tax effective features to allow financial advisers to manage their client’s superannuation investments and increase the end net value of their investment portfolio by managing tax liabilities.
Tax saving features includes:
Contributions tax deducted only when required to be remitted to the ATO and not in advance;
Optimisation of capital gains to minimise tax;
Parcel management by financial advisers to achieve a reduced capital gains tax liability;
Capital gains tax management when transferring from superannuation to pension; and
Anti-detriment payments to dependents of members who die.
Navigator is focused on managing tax efficiently for its customers. The research it conducts supplements this by looking at all components of a fund to ensure it provides a choice of growth opportunities for everyone who uses Navigator.
4-Jun-2007