Tax framework

Tax framework - MoneyOne

Our unique tax collection framework

Oasis Asset Management 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.

The savings are gained by calculating each individual investor or member’s tax position every quarter and taking into account estimated franking credits. By doing so, the adviser can assist their clients in managing 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.