SMSF SPECIAL, daft excess contributions tax, Age Pension rates, divorce and super, CSHC and more
Welcome to the MARCH 2011 edition of SuperGuide newsletter, a free and independent source of superannuation information for consumers.
The highlights of this month’s SuperGuide newsletter are:
- THE SOAPBOX : EXCESS CONTRIBUTIONS TAX REGIME IS… DAFT! Here’s a clever idea. Encourage Australians to save for retirement, and then punish them with a silly tax that potentially wipes out up to 93% of their contributions. The Government needs to act now to redress the unfairness of the excess contributions tax regime, and to avoid the political backlash that is sure to follow such draconian policy. Click on the link below to find out more.
- SMSF SPECIAL. The March edition is jam-packed with articles and Q&As on everything DIY super including: Is your SMSF due for a super service?, DIY super for beginners, updating trust deeds, the cost of SMSF audits, online and full-service SMSF providers, SMSF investment and lots more. Click on the links below to find out more.
- AGE PENSION: MARCH 2011 RATES NOW AVAILABLE. Around 80% of retirees receive a part or full Age Pension, and this level of Age Pension support will continue to be the case for at least the next 40 years. It’s no surprise then that the latest Age Pension rates update is a popular page on the SuperGuide website. Click on the link below to find out more.
- SUPER RATES AND THRESHOLDS FOR THE 2011/2012 YEAR. The ATO has released the contributions caps for the 2011/2012 year – again, no change from the 2010/2011 year caps. The ATO has also released other updated superannuation rates and thresholds, including the co-contribution income thresholds for the 2011/2012 year. Click on the link below to find out more.
- SUPER FUNDS DELIVER 8.6% FOR 12 MONTHS TO FEBRUARY 2011. The median superannuation growth fund delivered 8.6% for the 12 months to 28 February 2011, and the median growth fund delivered an impressive 9.6% for the financial year to date (July 2010 to February 2011), according to rating company Chant West. Click on the link below to find out more.
- DIVORCE AND SUPERANNUATION: WHO GETS WHAT? The rules relating to dividing superannuation assets in the event of a relationship breakdown or divorce are complex and chatting to a family lawyer about the rules and your entitlements is a must. Click on the link below to find out what happens to super benefits after a divorce.
- IS MY SUPER FUND PERFORMING? Due to popular demand, SuperGuide has created a special section on investment returns and fund performance. Each month, SuperGuide will provide the latest returns and regularly update comparison tables and report on the top-performing super funds. You can find this section on the right-hand side of the home page. For some of the updated articles included in this section, click on the relevant links below.
In this month’s newsletter, we also have Q&As covering the Commonwealth Seniors Health Card (CSHC), Age Pension assets test, lost super, accessing super early and lots more.
Note: You can click on the links below or you can access the newsletter link directly via the SuperGuide website. Click here if you want to access the MARCH 2011 newsletter page via the website.
AUSTRALIAN INVESTORS’ ASSOCIATION NATIONAL CONFERENCE: I will be speaking at the AIA’s national conference in September 2011. The AIA is offering an early bird discount for anyone who books for the conference before 31 May 2011. You can find more information about the AIA conference here.
If you like this newsletter and our website, then please pass on the newsletter to your friends and encourage them to sign up for the SuperGuide newsletter. As consumers, we have more influence with decision-makers when we speak as a group. Also, you can follow us on Twitter, or you may prefer to become a SuperGuide fan on Facebook, or do both.
Many thanks for your support and interest in SuperGuide.
Trish Power
SUPERGUIDE DIRECTORY!
In late January 2011, SuperGuide launched the SuperGuide Directory – a special directory for superannuation-related companies and other related service providers. We now have 100 service providers listed offering 150 services.
Contact Robert Barnes at robert@superguide.com.au for information about how to list.
Listing is free and the Directory is available as a reference for SuperGuide readers and the general public.
THE SOAPBOX
Excess contributions tax regime is… daft!
Here’s a clever idea. Encourage Australians to save for retirement, and then punish them with a silly tax that potentially wipes out up to 93% of their contributions.
Read more
FEATURES
Super funds deliver 8.6% for 12 months to February 2011
The median superannuation growth fund delivered 8.6% for the 12 months to 28 February 2011, and the median growth fund delivered an impressive 9.6% for the financial year to date (July 2010 to February 2011), according to rating company Chant West.
Read more
Age Pension: March 2011 rates now available
The new Age Pension rates, taking effect from 20 March 2011 are set out in the tables below. Note that ‘pf’ stands for ‘per fortnight’. The Age Pension rates are adjusted twice-yearly – in March and September.
Read more
Super rates and thresholds for the 2011/2012 year
The ATO has released the contributions caps for the 2011/2012 year – again, no change from the 2010/2011 year caps. The ATO has also released other updated superannuation rates and thresholds, including the co-contribution income thresholds, for the 2011/2012 year.
Read more
Divorce and superannuation: Who gets what?
Q: I am at the end of a divorce/property settlement. My ex has agreed to give me my share of his super. Does this have to go into a superannuation fund or can he transfer it to me in some other way?
Read more
IS MY SUPER FUND PERFORMING? (UPDATED ARTICLES)
Investment performance: We’re the best super fund. No, we’re the best…
A popular question from SuperGuide readers is: what is the best-performing super fund in Australia? Using the term ‘best’ is dangerous in any field because it involves some level of personal judgement, and the answer can change frequently depending on what you’re measuring, and when you’re making the assessment. Usually, there are a bunch of top-performing super funds over time rather than one particular super fund.
Read more
Exposing the performance history of Australia’s largest 200 super funds
The Australian Prudential Regulation Authority (APRA) has released its latest report on the performance of Australia’s largest 200 superannuation funds for the years 2004 to 2010. The report also provides average returns for the 200 super funds over a 5-year period and 7-year period.
Read more
Comparing super funds: Who’s who in the super zoo
Unless you work in the superannuation industry, how the world of super works can be bamboozling (sometimes it can be confusing even when you know the industry well). This article, on the different types of super funds, helps explains the main players in the Australian super world.
Read more
DIY SUPER FEATURES
Is your SMSF due for a super service?
If you run a self-managed super fund (SMSF), then you belong to an influential group that controls a third of all superannuation money held in Australia, and collectively owns nearly 10% of the Australian sharemarket!
Read more
SMSF basics: Updating SMSF trust deeds
Q: I (my wife & I) have had a self-managed super fund (SMSF) since 1996. As rules concerning income streams etc have changed since the date of my deed, can we simply sign a current, new, trust deed to make it effective for our requirements, or do I need to amend the relevant clauses in the old deed?
Read more
Are SMSF audits too expensive?
Q: I have noticed that SMSF auditors and administrators are charging what appears to be rather high costs, perhaps because of the mandatory nature of these audits. I have also noticed some online providers, including one that flatly refused to provide me with the name of their auditors.
Read more
SMSFs lead the super pack, again
Individuals running DIY super funds control 32% ($420.6 billion) of the $1.32 trillion invested via Australian superannuation funds. Ten years ago, DIY super funds represented one-tenth (10%) of all superannuation money.
Read more
SMSF investment: Where does all the DIY super money go?
Each quarter the ATO releases self-managed super fund statistics derived from annual return data. Some of the more interesting data outlines the investments that SMSF trustees choose, and how much SMSF money is invested in the different asset types.
Read more
DIY SUPER FOR BEGINNERS
SMSF providers: What should I look for when setting up my DIY super fund?
Q: I came across your website which looks excellent. I am about to set-up my self-managed super fund (SMSF) but I am not sure who to handle this for me. Some online providers are reasonably priced but I am concerned about access and professionalism as they are online only.
Read more
Is DIY super right for you?
Going solo in super is a long-term financial decision. A DIY fund may be a feasible option for an individual if they satisfy the following criteria: More than $200,000 in super savings; Access to an adviser who knows a lot about DIY super; Comfortable with the costs involved in setting up and running the DIY fund; Experienced in investing, and keep up to date on the markets and investment trends; Familiar with, or willing to learn about the superannuation rules; Aware of the administration and compliance work involved in running the DIY fund.
Read more
SMSF basics: Joining the DIY super club
Australia’s DIY super fund sector has emerged as the most financially powerful sector in the superannuation industry. As at 31 December 2010, self-managed super funds (SMSFs), as DIY super funds are officially known, controlled $421 billion of the $1.32 trillion held in super assets in Australia.
Read more
Do you fit the profile of a ‘typical’ SMSF trustee?
The latest ATO statistics on SMSFs (representing SMSF activity up to the end of December 2010) highlight some interesting observations that can be made about the current batch of SMSF trustees. Although attempting to slot around 840,000 trustees running just under 440,000 SMSFs into a box called ‘typical’ is an impossible task, the statistics do shed some light on the average SMSF balance, the ages of SMSF trustees, state of origin, gender balance and income levels.
Read more
Q&As
Age Pension: When are the thresholds for the assets test increased?
Q: Do you know how frequently the values in the Age Pension assets test are increased by the government?
Read more
SMSF pension: Can I still make super contributions?
Q: I am 62 years of age and retired. I have recently commenced an account-based pension from my SMSF. Can I still make non-concessional contributions to that fund?
Read more
Commonwealth Seniors Health Card: Am I eligible if I live in a commonwealth country?
Q: Could you tell me if the Commonwealth Seniors Health Card is available to Commonwealth Seniors? If not, why is the term Commonwealth used? We are UK seniors resident in the UK, but are house owners in WA and spend three to six months each year in WA on a tourist visa.
Read more
Superannuation Guarantee: How do I find unpaid or lost super?
Q: I worked in a company in Perth in 2000. I left that job and returned to the east coast. As it was a new company they decided to pay super after 6 months and supposedly kept the funds in an investment account until then. When I arrived in the east I sent them the name of a fund I wished to have the money put into. That did not happen.
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Accessing super early: Is it possible to withdraw super to pay overdue rent?
Q: I have a tenant who is about to be evicted from their rental home. He has a small super benefit can he access that under the severe financial hardship (clause 4 b) – everyday living expenses?
Read more
