skalman

Hello!

I have something called "kapitalförsäkring" in Sweden. With it I can trade stocks etc. In Sweden I pay a percentage of the total value in tax, it doesn't matter if the value increases or decreases.

I think this can be translated to "(life) insurance wrapper" or "portfolio bond" in English and I have been trying to find information about how this is taxed in Australia.

Does anyone have an idea?

JAJ

If you want to trade stocks, why would you not simply buy them directly or use a unit trust (mutual fund?)

ABCDiamond

I think you may need to check this with the ATO, and get a private ruling.

I think this is a form of Endowment Insurance which can be sold at any time ?

My guess is that it would only be taxed on sale, but that is just a guess.

skalman

Thanks for your replies. I will read up on endowment insurance.

The only restriction I have on the "insurance" is that I can't withdraw money the first year. After that moving money out of it is not a problem. You can move both part of the money or all. No restrictions on adding money.

The benefits (in Sweden) compared to the common way of trading stocks is that the tax declaration is very easy. The insurance company pays the tax for me and I don't need to do anything. Depending on how well the value of the stocks change it could also result in lower tax but that depends. Need to pay tax even if the value fall.