How to use tfsa account?

Right, first things first. The TFSA is actually a Canadian account. We don't have a direct equivalent with that name in Australia, which can be a bit confusing.

Our main tax-advantaged vehicle is your superannuation fund. Money you put into super, and the earnings it makes, are taxed at a very low rate, usually 15%. The catch, of course, is that your money is generally locked away until you retire. It's brilliant for long-term savings.

For investing outside of super, there isn't a special tax-free wrapper like a TFSA. However, we do have a great tax rule for personal investments. If you buy assets like shares and hold them for more than 12 months, you only pay capital gains tax on 50% of the profit.

A really clever strategy if you have a home loan is using an offset account. The money you keep in there saves you mortgage interest. This saving is effectively a risk-free, tax-free return on your cash. It's one of the best tools available for Aussies to get ahead.