Government’s boo-boo exposed, 2017/2018 contributions guides, SMSF checklist, Age Pension changes, bring-forward rule, spouse tax offset
With only a few days left of the 2016/2017 year, and the world of super to change dramatically from 1 July 2017, the highlights of the JUNE 2017 edition are:
- GUEST CONTRIBUTOR: RETIREMENT INCOME AND SAVINGS TRAP CAUSED BY COALITION’S 2017 SUPER AND AGE PENSION CHANGES. Under the new rules, middle Australia has no incentive to save more than $400,000 in super and other savings, and this will cost the government a pile of money, according to a paper prepared by Jack Hammond QC, founder of advocacy group, Save Our Super, and Terry O’Brien, a retired Treasury official. In a related article, SuperGuide compiles 13 of the stand-out findings from this important paper.
- TREASURER MORRISON’S ‘RETIREMENTGATE’ ENCOURAGES AUSSIES TO SPEND AND TAKE AGE PENSION. Based on the analysis in Save Our Super’s paper, I am astounded that the federal government went ahead with the Age Pension and super changes. Oh, that’s right, it seems the government didn’t conduct analysis on the long-term implications of these changes. See link below for more on the upcoming budgetary disaster.
- SUPERANNUATION RATES AND THRESHOLDS FOR 2017/2018 YEAR, AND 2016/2017 YEAR. A handy reference for any last-minute decisions for this financial year, and for your planning for next year.
- UPDATED 2017/2018 CONTRIBUTIONS GUIDES. We have updated our popular guides explaining all you need to know about concessional (before-tax) contributions, non-concessional (after-tax) contributions and co-contributions. The articles also explain the 2016/2017 contributions rules.
- AGE PENSION: MORE AUSTRALIANS ENTITLED TO PAYMENTS FROM JULY 2017. The thresholds for the assets test and income test have increased, as well as the assets thresholds for deeming rates. Age Pension age also increases – to 65.5 years! See updated articles below.
- NO REST FOR SMSF TRUSTEES: 10 JOBS FOR LIFE AFTER 1 JULY 2017. See link below for a timely to-do list for the 2017/2018 year.
- BOOST YOUR SPOUSE’S RETIREMENT KITTY: 10 THINGS YOU NEED TO KNOW. From 1 July 2017, the income thresholds for the spouse contributions tax offset will more than treble. See link below to find out if your family are eligible.
- BRING-FORWARD RULE: 10 FACTS YOU SHOULD KNOW. From 1 July 2017, making substantial after-tax contributions is a lot more complicated.
- ENCORE: FOR YOUR PLANNING, AND CONVENIENCE. With only days left of the current financial year, we have included our popular and important articles covering the July 2017 changes, the rules applicable for the 2016/2017 year, and the latest income tax rates.
Note: The 2016/2017 financial year investment returns, including top-performing super funds will be published in our July 2017 newsletter.
You can find these articles and more by clicking on the links below.
Many thanks for your support and interest in SuperGuide.
The practical effect of the 2017 Age Pension changes is that you receive more total retirement income (including Age Pension) with $400,000 in super, than you do with $800,000 in super, or even $1 million in super. Under the new rules, the most desirable savings targets are $400,000 or $1,050,000, and to accumulate over this $650,000 divide using the post-July 2017 concessional contributions limits would take 26 years. Read more
Retirement income and savings trap caused by Coalition’s 2017 superannuation and Age Pension changes
SuperGuide has invited advocacy group, Save Our Super, to highlight the immediate and long-term implications of the federal government’s latest changes to super and the Age Pension. The authors of this article, Jack Hammond, founder of Save Our Super, and Terrence (Terry) O’Brien, a retired Treasury official, have kindly shared their decades of combined expertise and experience in the legal, economic and policy areas. Read more
For a couple who own their home, the retirement savings ‘sweet spot’ target should be $400,000, to ensure maximum income (utilising super savings and Age Pension entitlements under the 2017 changes), according to a paper written by advocacy group, Save Our Super. Read more