After a year of analysing financial services like it has never been done before, the RC Final Report was released today with 76 recommendations which are expected to be adopted. What will change?
It sounds arcane but it could be costly. For the first time, about 44,000 individuals will receive their first Division 293 notice early in 2019, and it will surprise many.
Where once it was difficult to differentiate between the superannuation policies of the two major political parties, the 2019 Federal Election will deliver some stark choices for voters.
Selecting 10 winners from hundreds of alternatives presents major challenges, and there are no guarantees past performance will continue. It mainly targets only $1 billion from the $150 billion contributed each year.
One person’s unjust retrospective policy change is another’s overdue and necessary reform. Did people objecting about unfavourable policy retrospectivity complain when they benefitted from a retrospective change?
Depending on the type of fund you use and whether you pay for advice, there is a large difference in the size of fees. It might be worth paying for extras but choose the fund and advice level that suits you.
Mercer says the nature of the workforce is changing and many part-time workers in the gig economy are excluded from super. It contributes to widespread disengagement and apathy towards super.
Most people think of super access in terms of age, but when life deals a cruel blow, the rules allow members early access subject to certain conditions. It’s a valuable safety net.
In considering whether setting up an SMSF is the right decision for you, weigh up compliance obligations and cost with the main advantages SMSFs offer over other super funds. The 6 key positives are enumerated here.
Labor’s franking proposal could affect many more super funds than expected, not only SMSFs, depending on the allocation to Australian shares, their franking and the percentage of assets in pension phase.
APRA’s letter to super funds highlights concerns about ‘cash’ investments. A lack of understanding might haunt investors when the next downturn comes as too many people forsake protection for yield.
Claims that zero tax rates on superannuation pension funds are a rort are misinformed because they ignore the taxes paid to put money into super, and the social contract that super was designed for.
Labor has foreshadowed significant amendments to a wide range of financial policies, and while the new PM has time to make up lost ground, Labor is favourite to win the next federal election.
Round 5 of the Royal Commission focused on superannuation. Conflicts of interest, trustee responsibilities and delays in meeting the legal obligation to transfer default clients to MySuper products featured.