Guest contributor, Budget highlights, July 2017 changes, Top 10 lists, tips for over-65s, Downsizing and super, 25 Q&As
Highlights of the May 2017 edition of SuperGuide include:
- GUEST CONTRIBUTOR: SUPER CHANGES – WHY GRANDFATHERING THE RULES MUST BE CONSIDERED. Founder of Save Our Super, Jack Hammond QC, and economist and former Treasury official Terrence O’Brien, present the case for fairness when implementing new super rules, and also the case against retrospective law. This article reinforces why there has been such ferocious opposition to the most recent super and Age Pension changes.
- NEW FIRST HOME SUPER SAVER SCHEME: 10 THINGS YOU NEED TO KNOW. SuperGuide takes a closer look at the details of the new proposal.
- DOWNSIZING AND SUPER: 10 THINGS YOU SHOULD KNOW. Australians aged 65 years or older will be able to make super contributions of up to $300,000 each, from the sale proceeds of their family home. Click on the link below for more details.
- MEDICARE INCREASE TO HELP PAY FOR NDIS. According to the government, the extra 0.5% in Medicare levy from July 2019, in addition to the extra 0.5% since July 2014 (plus state contributions) will enable the NDIS to be fully funded.
- CONTRIBUTING TO YOUR SPOUSE’S SUPER ACCOUNT. We answer the four most popular questions asked about boosting your spouse’s super stash.
- SUPER FOR BEGINNERS (25 Q&As). A handy list, updated and revamped for the 2017/2018 financial year, and current for the 2016/2017 financial year.
- MORE TOP 10 LISTS. Check out our articles, Age Pension (10 important facts) and, For over-65s (10 tips for making super contributions).
- INVESTMENT PERFORMANCE: SUPER FUNDS GAIN 1.5% IN APRIL 2017. After a strong 10 months, double-digit returns look possible for the 2016/2017 year.
- ENCORE: FOR YOUR PLANNING, AND CONVENIENCE. With so many super changes taking place from July 2017, and only 5 WEEKS left of the current financial year, at the end of the newsletter, we have included updated articles covering the July 2017 changes, the rules applicable for the 2016/2017 year, and the latest income tax rates.
Note: You can find these articles by clicking on the links below.
Many thanks for your support and interest in SuperGuide.
Trish Power
THE SOAPBOX
Guest contributor: Super changes – why grandfathering the rules must be considered
SuperGuide has invited advocacy group, Save Our Super, to explain the importance of ‘grandfathering’ existing rules when significantly adverse changes to super and age pension law are introduced. Read more
MAY 2017 BUDGET MEASURES
Contributing super by downsizing your home: 10-point guide
From 1 July 2018, Australians aged 65 years or older will be able to make a non-concessional (after-tax) contribution into their super account of up to $300,000 from the sale proceeds of their family home if they have owned the property for at least 10 years. Read more
10-point guide to First Home Super Saver Scheme
SuperGuide has taken a closer look at the details of the new proposal, to help readers understand whether or not the FHSSS is a useful policy for first-home buyers. Read more
Medicare levy will not increase to further support NDIS
The extra 0.5% in Medicare levy from July 2019, in addition to the previous extra 0.5% applicable since July 2014 (and don’t forget hefty contributions from State governments) will enable the NDIS to be fully funded. The July 2019 increase is to recognise that the NDIS needs to be fully funded, but is also in response to cost blowouts from initial estimates. Read more
2017 Federal Budget summary: Superannuation and retirement measures
The major retirement-related policies announced by Scott Morrison cover superannuation, Age Pension, income tax, Medicare levy, and other related measures. The key policies are set out in this article. Read more
FEATURES
Contributing to your spouse’s super account (4 Q&As)
Q: I’m fully employed while my wife has not been working for 18 months, and she is unlikely to return to work before the end of next financial year. How can I contribute to her super account? Read more
Australian Age Pension: 10 important facts you should know
The article contains 10 important facts to think about before applying for the Australian Age Pension. Read more
Super for Beginners (25 Q&As)
One of SuperGuide’s more popular initiatives has been the development of a ‘Super for Beginners’ section that answers some of the many questions that we receive from those readers who are new to superannuation and new to super’s terminology. In this article, 25 Q&As have been updated and revamped for the 2017/2018 financial year (1 July 2017 to 30 June 2018), and also is current for the 2016/2017 financial year. Read more
Investment performance: Super funds gain 1.5% in April 2017
The median superannuation growth fund gained 1.5% in value during the month of April 2017, and has delivered 10.1% for the first 10 months of the 2016/2017 financial year, according to rating company, Chant West. Read more
Preservation age: I’m 58. Can I withdraw my super benefits?
Q: Can you please tell me whether I can withdraw my super benefits when I retire at age 58? Read more
For over-65s: Ten tips when making super contributions
You can make voluntary superannuation contributions up to the age of 74, and these can be concessional (before-tax) or non-concessional (after-tax) contributions. Read more
Age 65: Accessing your super is a right
Q: I am female and I will be 66 in a few weeks. My savings of $9,000 were used to pay for my husband’s funeral expenses. Read more
ENCORE: FOR YOUR CONVENIENCE AND RETIREMENT PLANNING
Superannuation checklist: What rules apply for the 2017/2018 year?
With only 5 weeks left of the 2016/2017 financial year, it is timely to consider whether you plan to take advantage of pre-July 2017 rules, especially in relation to making super contributions. Read more
Super contributions caps for the 2018/2019 year (and 2017/2018 year)
Concessional contributions include your employer’s compulsory Superannuation Guarantee (SG) contributions, your salary-sacrificed contributions, or any contributions claimed as a tax deduction. Non-concessional (after-tax) contributions are super contributions made from after-tax dollars or non-taxed savings. Read more
Latest superannuation changes: 2017/2018 guide
Radical and substantial superannuation changes take effect from 1 July 2017: have you investigated how the super changes will affect your superannuation and retirement plans? Read more
Less tax, more super? A transition-to-retirement pension is no longer the answer
From 1 July 2017, the fund earnings on assets financing a transition-to-retirement pension (TRIP) will no longer be exempt from earnings tax. Read more
Retirement phase: A super guide to the $1.6 million transfer balance cap
Effective from 1 July 2017, for every Australian, a cap of $1.6 million will be imposed on the amount of super that can be transferred into retirement phase, and effectively force Australians to remove super benefits from retirement phase if a pension account balance exceeds this amount as at 1 July 2017. Read more
New normal: $100,000 non-concessional contributions cap
The annual $100,000 non-concessional contributions cap and the maximum $300,000 bring-forward cap applies from 1 July 2017, although note transitional provisions are in place for pre-existing bring forwards. Read more
Australian income tax rates for 2018/2019 and 2017/2018 years (and earlier years)
The Australian income tax rates applicable for the 2017/2018 financial year, and for the 2016/2017, 2015/2016 and 2014/2015 financial years are set out in the tax tables in this article. Read more
SMSF trustees now face bigger penalties (from 2017/2018 year)
SMSF trustees can expect harsher fines from the next financial year (2017/2018 year) onwards with administrative penalties of up to $12,600 per trustee (including corporate trustee) for a breach of the super rules. Read more
