SG jumps to 12%, tax refunds, contributions cap doubles, no more commissions, Cooper bans exotics
Welcome to the Henry Tax Review special edition of the SuperGuide newsletter.
The Federal Government has announced a raft of changes that will affect your superannuation savings and your retirement plans. Most of the news is fabulous for superannuation savers – in particular, the 33% jump in the Superannuation Guarantee rate from 9% to 12%, and the doubling of the contributions cap for over-50s.
If you click on the links in this email you can read about the following:
- HENRY TAX REVIEW. The Federal Government’s response to the Henry Tax Review is surprisingly positive for super savers – SG jumps by 33%, tax refunds for lower-income earners, contributions cap doubles for over-50s
- NO MORE COMMISSIONS. The Government surprised many Australians last week by banning commissions on all investment and superannuation products, taking effect from 2012.
- SMSFS: NO MORE COLLECTIBLES OR EXOTIC INVESTMENTS. The latest Super System Review report recommends that SMSFs can no longer invest in collectibles such as wine, antiques, stamps or fast exotic cars. Click on the link below to read about many more Super System Review SMSF recommendations.
HENRY TAX REVIEW
Henry Tax Review: Swan says no, but yes, yes to super
Using the Henry Tax Review as a political decoy, the Federal Treasurer, Mr Wayne Swan announced four major changes to the superannuation rules. The super news is a very big deal, because the changes, when legislated, should deliver larger retirement balances to more Australians.
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Superannuation Guarantee set to jump 33%
Working Australians received a pleasant surprise when the Federal Treasurer, Mr Wayne Swan, announced that compulsory employer superannuation contributions are set to jump from the current 9% of salary to 12% by July 2019, a whopping 33% increase in Superannuation Guarantee (SG) contributions.
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Superannuation Guarantee now fairer to older workers
In the recent past, SuperGuide has made a lot noise about the inequity of the SG rules for older workers. When you choose to work beyond the age of 69 you miss out on Superannuation Guarantee (SG) contributions. In other words, by working longer, older workers effectively took a pay cut.
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Super tax refund for lower-income earners is a winner
If you earn less than $37,000 a year, and your employer makes concessional (before-tax) superannuation contributions on your behalf, then you can expect a refund of the contributions tax deducted from your super account, paid directly to your superannuation account by the Federal Government.
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Over-50s contributions cap of $50,000 now permanent, for some
I have some more good super news for super savers from the Government’s response to the Henry Tax Review. Australians aged 50 or over retain the $50,000 cap for concessional (before-tax) contributions, subject to satisfying certain conditions.
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FINANCIAL ADVICE – NO MORE COMMISSIONS
Financial advice: Government bans new adviser commissions from 2012
We’re going to look back at this time with disbelief: for so many years the financial services industry was permitted to flog products that weren’t necessarily in the best interests of clients/investors and pretend that this product selling was ‘financial advice’.
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SUPER SYSTEM REVIEW
SMSFs: Nothing exotic or personal, says Cooper review
If you run a self-managed super fund don’t be expecting to invest in anything exotic, or to get up close and personal with fund assets, based on the latest preliminary recommendations from the Super System Review (SSR).
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Your next SuperGuide newsletter is the Federal Budget 2010 edition, arriving in your email boxes on the 12 May 2010.
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Trish Power
