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.
What to do if super guarantee payments from multiple employers, combined with salary sacrifice arrangements, have resulted in a breach of the concessional contribution cap.
Amid the Royal Commission words like toxicity, rot, darkness and attrition, the super industry must rebuild trust with accessible, open and candid communication, and stop scoring own goals.
The Royal Commission stoked the coals on financial advice fees and commissions, taking three days to learn trustees and management are severely conflicted by best interest responsibilities.
APRA and the ATO do not measure fund performance in the same way. The discrepancy can cause SMSF performance to appear worse than it actually is, and better collaboration between regulators is required.
The $1.6 million Transfer Balance Cap (TBC) on pension accounts affects only capital balances. It’s not affected by income earned and pensions paid, and there are ways to maximise the remaining tax-free status.
A couple can benefit if the person running against the $1.6 million cap on super pension balances contributes to the spouse’s super. It’s worth checking the eligibility requirements and tax offsets.
Disability insurance can be either inside or outside of superannuation. There are premium, payout amount and tax consequences of those decisions that should be analysed to achieve the best cover.
Low interest rates have created problems for retirees, leading to the threat of a reduced lifestyle quality, running out of cash or accepting the age pension. Taking high risks at this point may make things worse.
SMSFs are being targeted by property marketers, but is a single, illiquid investment a good super strategy, with its associated leverage? ASIC is worried SMSF trustees are not seeing the full picture, so we went looking.