Sneaky move on co-contribution, tax discount for savers, SMSF investment opportunity and more
Dear SuperGuide reader
For those interested in super matters, the big party was last week (see our Henry Tax Review special), but last night’s Federal Budget still had a few tempting tidbits for anyone interested in tax incentives and saving, and a very naughty swifty committed by our PM and Treasurer.
SuperGuide’s Federal Budget 2010/2011 special edition explains some of these tempting tidbits. If you click on the links at the bottom of this email you can read about the following:
- THE SOAPBOX: SNEAKY SNEAKY – NO INDEXATION IN CO-CONTRIBUTION INCOME THRESHOLD FOR 2 YEARS.
- FEDERAL BUDGET MAY 2010: AT A GLANCE. Read about all of the major Budget announcements, including the previously promised tax cuts taking effect from July 2010, and an increase in the Low Income Tax Offset
- AUTOMATIC TAX REFUNDS FOR AUSTRALIANS. If you don’t lead a complex life, then the Federal Government is rewarding you with potentially hundreds of dollars in cash, in the form of a tax refund. Click on the link below for more information.
- SAVERS REWARDED WITH 50% TAX DISCOUNT. You can receive a 50% tax discount on the first $1,000 of interest income. Click on the link below for more information.
- SMSFs: COMPANIES NEED YOUR MONEY. The Government wants to encourage retail investors to invest in corporate bonds, and presumably this includes SMSF trustees. Click on the link below.
- SMSFs: MORE FUNDING FOR SUPER COMPLAINTS TRIBUNAL. Is the extra SCT funding over the next four years designed to finance the SCT’s expanded SMSF jurisdiction?
THE SOAPBOX: Sneaky sneaky – no indexation in co-contribution income threshold for 2 years
Although superannuation savers have generally done well from the Federal Government’s Henry Tax Review announcements, and the May 2010 Budget, hidden away in the detail of the Budget announcements is a shocker.
FEDERAL BUDGET MAY 2010
Federal Budget May 2010: A quick summary
On 2 May 2010, Federal Treasurer Mr Wayne Swan effectively released a mini-budget (in response to the Henry Tax Review) announcing the following changes; Increase in Superannuation Guarantee (SG) from 9% to 12%; Tax refund in the form of a Government super contribution to lower-income earners…
Federal Budget 2010: Psst! The Government is giving away hundreds of dollars, but there’s a catch
Writing about tax returns is not strictly a topic for a superannuation website, but since the Federal Government released all the exciting super stuff the week before the Federal Budget, I have time to explain some of the other wealth-creating policies announced by the Government.
Super alternative for some: 50% tax discount on savings products
As leaked to the media and reported several times over the past few weeks, the Government has announced a tax discount on interest income derived from savings products. Australians can claim a 50% tax discount for the first $1,000 of interest they earn, including interest earned on deposits held in banks, building societies and credit unions, and on bonds, debentures and annuity products.
SMSFs: Moves to improve corporate bond market
For SMSF investors, one of the more significant Federal Budget announcements is a move intended to boost business lending competition. According to the announcement, the Australian Securities and Investments Commission (ASIC) will permit listed entities meeting specific criteria to issue bonds to retail investors using a simplified process.
SMSFs: More money for Superannuation Complaints Tribunal
In the latest preliminary report from the Super System Review (SSR) (see article SMSFs: Nothing exotic or personal says Cooper Review), the SSR recommends that the Superannuation Complains Tribunal (SCT) have a greater role to play in the resolution of complaints over death benefit payments.