Generation Life is proud to have won the Money magazine Best of the Best Award 2024 for Innovation - Tax Aware Investing.
Generation Life has received this award based on responsiveness to economic factors, societal change and gaps in the market. We consider the recognition as paying homage to our outstanding thought and product leadership that has significantly advanced expertise across key sectors.
Grant Hackett OAM, Chief Executive Officer at Generation Life said: “The business has spent many years developing and implementing our tax aware structure. Our tax aware approach has produced amazing outcomes for investors. We are proud of the range of choices it gives investors which provides a solution for every generation.”
Grant Hackett expects investors to start paying more attention to after tax returns in a persistently low growth environment. “If you're generating an extra 1%-2% on an after-tax basis, that’s material, especially when you take into account the effect of compounding over time.”
Generation Life’s Tax Optimised investment options can reduce the impact of tax on your returns by reducing an investment’s tax assessable earnings by offsetting capital investment losses against income. This can bring the effective tax rate down to less than 15% for many of the growth orientated investment options.ᵃ
Through a disciplined tax aware approach to trading when we sell investments, such as shares, our process ensures that we effectively manage our clients’ portfolios to deliver the best tax outcomes. This is an important consideration for any client paying up to 47% marginal tax rate on direct investments.
The compounding effect of this process over time can be significant. The longer you are invested, the better the after-tax outcome.
a) Capital losses refers to losses realised on the disposal of a fund’s investments that are treated as revenue losses for tax purposes. Estimated effective average annual tax rates –these represent the estimated average annual tax rates as a percentage of earnings for each 12-month period over a period of 15 years. Actual tax amounts payable are not guaranteed and may vary from year to year based on the earnings of an investment option. Past performance is not an indication of future performance.