SMSF guide, tax-free super, top 20 cheapest insurance, super tax tables, franked dividends
Highlights of the OCTOBER 2017 edition include:
- I’M 58 AND I HAVE $250,000 IN SUPER. DO I PAY SUPER TAX? Click on the article link to find out.
- WHAT IS THE RETIREMENT AGE IN AUSTRALIA? It depends…
- LATEST SUPER CHANGES: 25-POINT SMSF GUIDE TO ATO’S HOT ISSUES. Super has become a lot more complicated, especially for SMSFs. Check out what your SMSF should be doing to comply with the key July 2017 super changes. In separate SMSF articles, find out about new rules for SMSF asset valuations, and harsher penalties for naughty SMSF trustees.
- COMPARING SUPER FUNDS: TOP 20 CHEAPEST FUNDS FOR LIFE INSURANCE. Did you know that life insurance premiums more than double from the age of 45, until when you turn 55? It may be worth shopping around for insurance. In a separate article, discover the top 20 cheapest super funds for income protection insurance.
- SUPER FUNDS GAIN 1.5% FOR SEPTEMBER 2017 QUARTER. See link below to find out more.
- RESPONSIBLE INVESTMENT: A GUIDE TO INVESTING YOUR VALUES WITH YOUR SUPER ACCOUNT. We explain how you can invest your retirement savings according to your values.
- SMSF INVESTMENT: FRANKED DIVIDENDS TO LOSE SOME SHINE. Company tax rates are falling, which means lower franking credits for investors.
- RETIRING BEFORE THE AGE OF 60: THE TAX DEAL. Now updated for the July 2017 changes, including explanatory tax tables. In a separate article, since 1 July 2017, find out why tax-free super from the age of 60 is no longer the case for many Australians.
- NO TAX IN RETIREMENT BECAUSE YOU SAPTO. Super changes may have hit hard, but the special tax rates for seniors remain in place.
Note: You can find these articles, and many more, by clicking on the links below.
Many thanks for your support and interest in SuperGuide throughout the year, and over the past 9 years. Our readership continues to grow with 4.5 million visits to the site during the past 12 months alone. We are also fortunate to have more than 30,000 subscribers, including you, receiving this newsletter each month, and our figures tell us that SuperGuide subscribers share our newsletter with many thousands more.
We hope you enjoy our latest edition.
SPECIAL SUPER GUIDES
Since 1 July 2017, superannuation has become a lot more complicated, especially for Australians running self-managed super funds. The 25 points in this SMSF guide cover key issues concerning total superannuation balance, transfer balance cap, transitional CGT relief, SMSF event-based reporting, SMSF asset valuations, and certain planning arrangements. Read more
In the past few years, life insurance premiums associated with super fund accounts have increased considerably. More Australians are shopping around for the best life insurance deal, and discovering that men sometimes get a different insurance deal to women, and as you age, your premiums jump dramatically. Read more
Very few people realise that most income protection insurance premiums more than double from the age of 45 to 55, and this also applies to the super funds offering the cheapest insurance deals. For the best deals in income protection insurance, see the 4 tables in this article. Read more
In Australia, there is no official retirement age but there are special rules that apply, which determine the age when you can withdraw your superannuation benefits (preservation age), and the age when you can claim the Age Pension (Age Pension age). Read more
Q: I turned 58 in July 2017, and I’m thinking of retiring before I turn 60. I would like to know whether I would have to pay tax on my superannuation. Read more
Although super fund members want their super fund to produce a good investment return every year, many also want their money to be invested responsibly and in line with their personal values. Some super fund members feel uncomfortable with their retirement savings supporting activities like fossil fuel mining, development of armaments, or exploiting employees in third-world countries. Read more
Performance tables to 30 September 2017, for the 5 main investment options offered by super funds, are set out in this article. Investment returns spanning up to 15 years are also listed in the table later in this article. Read more
The Liberal government is reducing the company tax rate to 25% for smaller companies (annual turnover of less than $50 million) by July 2026, and which is already law. The federal government is also proposing to reduce the company tax rate to 25% for all companies currently paying 30%, including large listed companies (subject to legislation). Read more
If you retire before the age of 60, your super benefit payments are likely to be subject to tax — but not always. With the right structure, and usually with expert advice, many Australians retiring early can end up paying no tax. Read more
If you withdraw your super benefits after you turn 60 years of age, you can expect to pay NO tax on those super benefit payments, unless you are a member of certain types of public sector super funds. Further, since 1 July 2017, certain recipients of private and public defined benefit pensions will also pay tax (or more tax) on pension payments (see summary tables at the end of this article). Read more
The superannuation rules delivering tax-free super for over-60s are not the only tax benefits that you can take advantage of in retirement. If you are aged 65 years or over, you may also be eligible for the Seniors & Pensioners Tax Offset (SAPTO), which effectively gives you access to a higher tax-free threshold, but is not available if your income exceeds a certain level. Read more
In a recent speech at an industry conference, ATO assistant commissioner, Kasey Macfarlane highlighted the increased importance of SMSF asset valuations since the introduction of the July 2017 super changes. Read more
In a recent speech at an industry conference, ATO assistant commissioner Kasey Macfarlane provided a very helpful explanation of what SMSF trustees can expect under the new SMSF event-based reporting regime. The proposed event-based reporting rules relate to the new $1.6 million transfer balance cap (which applies when transferring super money to retirement phase). Read more
Read this article to discover the rules in place for SMSF trustees, and discover what you can do to ensure your SMSF operates within the super laws. Read more
SMSF trustees can be subject to a suite of penalties, if they fail to properly adhere to the super rules. Read more
Q: How often or by what criteria can you buy and sell listed shares to obtain a financial gain without being classed as a trader? Read more
Q: Can I set up a self-managed super fund (SMSF) and invest the funds in a company of which I am the sole director? Read more
Q: I am trying to understand how my super is taxed and it seems that it is taxed at every turn. Can you please explain when, and how, a super benefit is taxed? Read more
Q: If I choose to salary sacrifice some of my income into my super account, is the 15% taxed separately on the salary sacrificed super, and then another 15% on amount my employer contributed, or are the two added together then the 15% tax deducted? Read more
Q: I turn 60 in May 2018. Is the compulsory 4% drawdown from my super pension treated on a pro-rata basis for my tax return for the 2017/2018 year, or can I draw it down after May 2018 rendering my super income after 60, and then tax-free? Read more