Perpetual product still good value, says Perpetual
The recent Federal Budget changes to interest rate deductibility have shifted Perpetual’s protected investment interest rate higher than the rate of deductibility.
However, Perpetual general manager of structured products Russel Chesler said that the product, Perpetual Protected Investment — Series 3, remains a tax effective investment structure.
“The new legislation means investors with capital protected borrowings will be eligible to claim a tax deduction on interest incurred up to a maximum rate, set according to the Reserve Bank of Australia’s (RBA) Indicator Rate for Standard Housing Loans — 9.45 per cent,” he said.
Previously, the RBA Indicator Rate for Variable Personal Unsecured Loans was used as the benchmark, and this rate is currently sitting at 14.60 per cent.
“Our new product has interest rates ranging from 10.50 to 10.70 per cent, meaning under the new legislation investors can still claim 88 per cent total deductibility,” he said.
Recommended for you
ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors.
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With the election taking place on Saturday (3 May), Adviser Ratings examines how the two major parties could shape the advice industry in the future.
Count Gold Coast, an equity partner of Count, has entered into binding agreements to acquire clients of two accounting businesses, providing new opportunities for its financial advisers.
