Retirement reckoner, contributions strategies, spouse tax offset, pension payments, CGT relief, Age Pension calculator
Welcome to the first edition of the SuperGuide Premium newsletter. We thank you for supporting our new service.
In this edition, discover seven reasons why you need to know your Total Superannuation Balance, and check out our new Q&A guide on the catch-up concessional contributions rule taking effect from July 2018. For those making decisions about super contributions, we have also included articles on salary sacrificing, the improved spouse tax offset and the more flexible rules for tax-deductible super contributions. You can also try out our new SuperGuide Retirement Income Reckoner, our new Guide to minimum pension payments rules (including calculator), and our updated Age Pension calculator.
Industry expert Belinda Aisbett, explains why an SMSF audit every 3 years is not a good idea (and annual SMSF audits should be retained), and separately, University of Melbourne professor Roger Wilkins, identifies the wealthy retirees the ALP is targeting with the ban on franking credit refunds. Also for our SMSF readers, you can read why the ATO is taking a greater interest in SMSF valuations, and separately, check whether your fund is required to provide quarterly reporting of events from 1 July 2018.
And for those readers affected by the $1.6 million transfer balance cap, don’t forget the 30 June 2018 deadline for CGT relief on super assets transferred back to accumulation phase (see link below).
We hope you find the May 2018 newsletter helpful.
It came as quite a shock to many in the industry that the federal government announced a proposal to amend the annual audit requirement for SMSFs. SMSFs (like all superannuation vehicles) are presently required to be audited each year by an ASIC-approved SMSF auditor. Read more
The issue of whether or not retirees should be able to get a refund in dividend imputation has sparked considerable discussion of retirees’ income and wealth. Read more
RETIREMENT RECKONERS AND CALCULATORS
The SuperGuide Retirement Income Reckoner allows you to discover what type of annual income (indexed for inflation), you can expect in retirement (including PART Age Pension) for a range of superannuation balances. Read more
The SuperGuide Annual Minimum Pension Payment calculator works out an individual’s minimum pension payment amount, based on the individual’s age and account balance as at 1 July for the financial year. Read more
Using the calculator is easy. Enter your details in the calculator (in the yellow blocks) and you will see an estimate of amount of Age Pension you may be eligible for. The Age Pension rates are those that apply from 20 March 2018 to 19 September 2018. Read more
In this article, you can find the answers to 10 important questions about the new catch-up concessional contributions rule. Read more
The higher income threshold means many more couples are now able to take advantage of this opportunity to boost their partner’s super account, while saving a few dollars in tax at the same time. Read more
As an employee, the general rule when making super contributions is, you can take advantage of the concessional (before-tax) contributions rules by salary sacrificing, or by making tax-deductible super contributions. Read more
A person’s Total Superannuation Balance is used to track and limit the amount of superannuation that Australians can contribute to super. If you run an SMSF, a person’s TSB also has a bearing on some SMSFs in retirement phase. Read more
If you are claiming the CGT relief, you must apply for the temporary relief BEFORE you lodge your super fund’s 2016/2017 tax return. The ATO has extended lodgement date for the 2017 SMSF return until 30 June 2018. Read more
The median superannuation growth fund gained 1.7% in value for the month of April 2018, and gained 7.4% in value for the financial year to date (10 months), according to superannuation ratings agency, Chant West. Read more
The ATO has warned that SMSF trustees must apply SMSF asset valuations consistently for all fund purposes. For example, SMSF trustees cannot apply different valuation to the fund assets for transitional CGT relief, compared with the valuation used when valuing assets for transfer balance cap and total superannuation balance purposes. Read more
Q: Are the caps relating to ‘concessional’ and ‘non-concessional’ contributions regarded as separate? Read more
The maximum superannuation contribution base (MSCB) is used to determine the maximum Superannuation Guarantee (SG) contributions that an employer is required to make under the super laws. Read more
Salary sacrificing superannuation, by making before-tax super contributions, is a popular strategy for employees on middle-to-high incomes. The deal is that you increase your superannuation balance while reducing the amount of income tax payable on your salary or wages. Read more
Where do I go to find a calculator that helps me work out how much co-contribution I will be entitled to, and how much super I need to contribute to get that co-contribution? Read more
The list of 10 Q&As set out below answer many of questions that we have received on the concessional contributions cap. Read more
TAKING A SUPER PENSION
From 1 July 2018, SMSFs must report events that affect a fund member’s transfer balance to the ATO on an events basis (which the ATO has since confirmed must be reported quarterly if a SMSF has a fund member with a total superannuation balance of $1 million or more). Read more
Since 1 July 2017, a cap of $1.6 million has been imposed on every Australian, limiting the amount of super that can be transferred into retirement phase (what we previously called pension phase). Although the transfer balance cap will be indexed in $100,000 increments, the transfer balance cap for both the 2017/2018 year, and the 2018/2019 year, is $1.6 million. Read more
When you start a superannuation account-based pension, you must withdraw a minimum amount each financial year to secure a tax exemption for the investment earnings on the fund assets financing your super pension. Read more
The minimum pension payment is based on a percentage of your superannuation pension account balance. For some individuals, they may start a pension account with all of their retirement savings. Other individuals may start a pension account with some of their retirement savings, while also running an accumulation phase account. Read more