Noel responds to Chris doubting it is possible to take the heat out of the market with tax changes, but he’s fine if the 50% CGT discount does not kick in for at least five years.
Author Archive | Noel Whittaker
Under the new superannuation rules from 1 July 2017, how do salary sacrifice and the tax deductibility of super contributions work, separately or together? Don’t overlook this super opportunity.
It should be no surprise that many older Australians believe they have an entitlement to the age pension. Like an early version of the superannuation guarantee, pensions were once directly funded by personal tax.
A conversation with Government officials on the proposed super changes shows there is some logic behind those numbers.
Estimates of the cost savings from abolishing negative gearing are overstated because the property becomes positively geared and incurs capital gains tax on sale, and allowing it on new homes only is dangerous.
Superannuation’s anti-detriment provisions may be abolished as part of the government’s upcoming budget. It’s worth checking whether your own circumstances can take advantage of these rules.
Future retirees will be expected to be even more reliant on their own superannuation instead of the age pension. For the younger generation, your lifetime of investing should begin now, while time on your side.
A common concern for superannuants is how changes to the super system will affect their retirement outcomes. In reality, the proposed changes won’t affect the majority, but poor investment choices will.
The majority of Australians using negative gearing earn less than $80,000 a year, and it’s part of a long term wealth creation strategy that should be encouraged, especially with such uncertainty about pensions and super.
The government has announced changes to the pension asset test and taper rate effective 1 January 2017. While good news for many less affluent recipients, it means wealthier pensioners will receive less, or none at all.
Serious illness is something we think will happen to somebody else and insurance, like making a will, is easy to put off. It’s only when the problems start that we realise it’s too late to do anything about it.
Regardless of age, there’s always something that can improve your preparation for retirement, especially given doubts about the sustainability of Australia’s tax and welfare systems.
Government plans to amend FoFA are in tatters, due mainly to ill-informed comments about the nature of financial advice. ‘Best interests duty’ goes way beyond ‘duty of care’ used in other professions.