Super fees and returns, SMSFs and TBAR, Age Pension changes, Bring-forward rules, Reverse mortgages
Highlights of the June 2018 edition of the SuperGuide Premium newsletter include:
- SUPER FEES AND RETURNS CALCULATOR: The Productivity Commission have again highlighted the importance of fees in the returns equation, particularly when they are compounded for the long timeframe that superannuation is applied over. To help illustrate this we’ve designed a calculator that shows you the impact small percentages can make over time.
- SMSFs and TBAR: Another month, another acronym. The Transfer Balance Account Report is an important new administration requirement for SMSFs. Meg Heffron explains more about the TBAR and when it operates.
- AGE PENSION CHANGES: New assets and income thresholds apply from 1 July, which means more Australians may now be eligible for the Age Pension.
- BRING-FORWARD RULES: We’re in the middle of some complex transitional rules, so make sure you are fully up to speed if you have triggered the bring-forward rule in the last 2 financial years.
- REVERSE MORTGAGES: These may sound tempting when you are asset-rich but cash-poor, but reverse mortgages are surprisingly unpopular in Australia. Janine Mace explains how they work, what are the pros and cons, and the rules and impacts you need to consider.
FEATURES
What are the Transfer Balance Account Report (TBAR) rules for SMSFs?
The TBAR is a way of reporting a number of things but mainly it is concerned with super funds reporting to the ATO when certain events occur, and also reporting the amounts involved in those events. Read more
Which are the largest super funds?
Superannuation is now very much super-sized. Currently there is more than $2.6 trillion invested in super. That’s significantly more than the $1.8 trillion that could buy you Australia’s top 200 companies on the ASX. And with 9.5% of everyone’s wages being added each year, it’s projected to grow to $4.8 trillion by 2033. Read more
SMSF statistics: 1.1 million members with $747bn in super
Self-managed super funds (SMSFs) in Australia are privately run super funds that can currently have between one and four members (who must also be trustees of their fund). The government has proposed to allow SMSFs to have up to six members from 1 July 2019, but this is not yet legislated. Read more
Super fees and returns calculator
As a super fund member, you pay fees for that super fund to look after your super savings. Do you know how much your super fund charges, and how those super fund fees will affect your final retirement balance? Read more
Australian Age Pension rates (September 2019 to March 2020)
The rates for a full Age Pension for Australian residents for the period 20 March 2019 to 19 September 2019 are listed in this article. Read more
Beginner’s guide to making super contributions
Building a sizeable retirement nest egg can take some effort, but a recent study by Roy Morgan found only 18% of employees with super currently have more than the compulsory 9.5% of their salary or wages going into their super fund account. Read more
2019/2020 guide to non-concessional contributions (after-tax super contributions)
Most employees know their employer is helping to build their retirement savings by making regular contributions – like the Super Guarantee (SG) – into their super account as part of their salary package. These contributions are taxed concessionally – or at a special low rate – of 15% to encourage Australians to save for their retirement. Read more
A super guide to understanding the bring-forward rule
Putting money into your super account is easy. But to ensure you don’t take too much advantage of the generous tax benefits within the super system, the government has progressively tightened up the rules around making contributions. Read more
What is the Pension Loans Scheme, and how does it work?
Retirees are always looking for new ways to boost their retirement income or to pay for expenses, like home care. Although downsizing to a small home can be one option, the Pension Loans Scheme (PLS) offered by the federal government is a rarely considered alternative. Read more
What is a reverse mortgage and how does it work?
With the cost of residential property at all-time highs, it can be tempting for asset-rich and cash-poor retirees to look at ways of unlocking some of the money they have tied up in their home to help pay for their retirement expenses, particularly if their super account is small. Read more