Where to Hold Your Investments: Super vs Trust vs Personal Name

You can choose great investments - but if you put them in the wrong structure, you may lose thousands in unnecessary tax. 

Choosing where to hold your investments is as important as choosing the investments themselves. Superannuation, family trusts, and personal ownership all offer different tax advantages, risks, and estate planning benefits. Understanding these differences can significantly improve long-term wealth outcomes. 

1. Superannuation: Tax-Efficient for Retirement 

Super remains one of the most tax-effective structures in Australia. 

Tax benefits: 

• 15% tax on earnings (accumulation phase) 

• 0% tax in pension phase 

• Concessional contributions taxed at 15% (30% for high income earners) 

• Capital gains tax discounts inside super (1/3 discount) 

Best for: 

Long-term retirement savings, compounding growth, high-income earners reducing taxable income.  

Limitations: 

• Restricted access until preservation age 

• Contribution caps 

• Potential legislative risk 

2. Family Trust: Flexibility & Tax Distribution 

A discretionary or family trust can distribute income to beneficiaries in a tax-efficient way. 

Pros: 

• Ability to stream income to lower-taxed family members 

• Asset protection (depending on setup) 

• Useful for business owners and high-net-worth families 

• Estate planning flexibility 

Cons: 

• Setup and ongoing accounting costs 

• Cannot retain income without paying penalty tax 

• Not suitable for PAYG individuals with no dependants 

3. Personal Name Ownership 

Simple and fully accessible, but often less tax-efficient. 

Pros: 

• Full control and access to funds 

• Easy to manage 

• CGT discount available (50% after 12 months) 

Cons: 

• Investment income fully taxed at marginal rates 

• Limited protection from creditors and predators 

• May increase Medicare levy and impact other thresholds 

How to Choose the Right StructureTax Considerations 

• High income? → Super and trusts can reduce tax. 

• Low income now but expect increases? → Personal name may be fine short term. 

Risk & Asset Protection 

• Business owners often favour trusts or super to protect assets. 

• Personal ownership exposes assets to personal liability. 

Life Stage Flexibility 

• Pre-retirement: Build super, use trust for tax distribution. 

• In retirement: Super becomes tax-free; trusts assist with estate planning. 

• Family considerations: Trusts help transfer wealth efficiently. 

Key Takeaways

• There’s no one-size-fits-all structure — it depends on your personal situation both now and in the future - each has strengths. 

• Super is the most tax-efficient for retirement, but least flexible. 

• Trusts offer flexibility and asset protection. 

• Personal ownership is simple but often tax-inefficient. 

Need help choosing the right investment structure for your financial goals? Book a strategy session with a fiduciary advisor to optimise your tax, risk, and long-term wealth.

Simon

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