How PIE works for the Portfolio
If you are on a high tax rate (RWT) on your existing call or term investments, a PIE call or term investment may give you a better return. PIE investments have a top tax rate of 30% PIR (Prescribed Investment Rate). As the table below shows, a 5% p.a. PIE investment is equivalent to a non-PIE rate of 5.14% p.a. if you are a 30% tax payer and 5.37% p.a. if you are a 33% tax payer.
PIE |
non-PIE
30% RWT |
non-PIE
33%RWT |
5.00%
|
5.14%
|
5.37%
|
4.00%
|
4.11%
|
4.29%
|
3.00%
|
3.08%
|
3.22%
|