Let’s set this straight for the final time! Chris Bowen often used the example of a nurse on $67,000 who was at a significant disadvantage versus a retiree receiving franking. In fact, the outcome for both is almost the same.
Three weeks to go before the EOFY is still enough time to comply with the rules and make the most of superannuation and income tax opportunities. Here’s a quick checklist.
The extra 15% Division 293 tax slips easily under the radar, and most people do not realise how it is calculated and how the proposed Labor policy might now capture them.
Rarely do we go into an election with such contrasting policies from the major parties, and no more so than in superannuation. The nation’s decision on 18 May will have a big impact on retirement savings.
SMSFs are currently the largest segment of superannuation, but by 2020, industry funds are expected to dominate, having recently overtaken retail funds. Labor’s franking proposal will accelerate the trend.
If Labor legislates to withdraw franking credit refunds, retirees have an alternative for their pension superannuation to retain the refund. It shows the proposal does not have ‘horizontal equity’ between structures.
If you have been maintaining a small inactive superannuation fund purely for insurance purposes, you need to act quickly to avoid losing cover which might be difficult to replace.
The ‘direct investment options’ may have structural advantages for franking credit refunds, but that does not mean SMSFs do not have their own specific advantages. What’s best for the superannuant?
In the 2019/2020 Federal Budget, the Government made few changes to superannuation rules to assist retirement planning.
From 1 July 2020, Australians aged 65 and 66 will be able to make voluntary superannuation contributions, both concessional and non-concessional, without meeting the Work Test.
Sections of the superannuation industry presented a wishlist to Government for the 2019 Budget. How many changes made it into Josh Frydenberg’s document? None of the significant ones.
A reader observed that the Australian Financial Review reported that ‘member direct’ offers will not receive franking credit refunds. Some industry funds have confirmed their options operate in one pool.
There are reassuring trends that more women are becoming confident investors, but they lag men significantly and feel more unprepared for retirement despite living longer.
Many commentators are assuming all industry and retail funds can utilise their franking credit refunds, but a case-by-case check is required. Plus hard words from a cranky reader.
The Labor franking credit proposal creates a group of people who count franking credits as taxable income, and another group that doesn’t. A basic principle of tax should be horizontal equity between investment structures.
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?