‘’Failed” funds named, How super is taxed, SMSF succession planning, Recontribution strategy explained, Age Pension increase
Highlights of the September 2021 edition of the SuperGuide Premium newsletter include:
- THE DIRTY (BAKER’S DOZEN): Be alert but not alarmed is the message for members of one of APRA’s 13 “failed” funds.
- SUPER AND TAXES: Super is the most tax-effective vehicle for retirement savings, but there is still tax to pay along the way.
- WHO WILL CONTROL YOUR SMSF? Succession planning is vital to ensure your super ends up in the right hands.
- INDEPENDENT FINANCIAL ADVICE: A financial adviser now needs to tell you if they are not independent. We detail why it’s important, what makes an adviser truly independent, and how to find one.
- RECONTRIBUTION CASE STUDY: How withdrawing super and putting it back in again can save tax and aid estate planning.
- AGE PENSION INCREASE: With rates about to rise, we explain how the Age Pension works and how to get your fair share.
SUPER NEWS
Super news for September 2021
Underperforming funds now need to tell APRA why, Re-contributions of Covid-19 early release super withdrawals allowed, Separating couples can request partner’s super information, SMSFs numbers increase in June quarter, Retirees experience higher inflation, SMSF investors fuel growth in ETFs, Colonial First State in Federal Court.
SUPER FUNDS
APRA’s performance test: Progress but can do better
While APRA’s annual heatmaps have been delayed until the new year, the results of the annual performance test and new insights released by the regulator shine a light on super funds that are failing to deliver for their members.
The big picture: Focus on super’s long-term returns
They say a picture is worth a thousand words, so we’ve created a visual representation of super’s value in the long run.
Your future now stapled to your super
New legislation will ‘staple’ members to their first super fund until they retire unless they choose otherwise. There are benefits but also some pitfalls to be aware of.
Super fund mergers: What does it mean for members?
The urge to merge is gaining momentum among super funds, leaving members to weigh up the costs and benefits.
Super fund performance: Monthly returns to March 2024
Super funds continued their positive run in March, with the median Growth fund up 1.9% over the month.
SUPER AND TAX
How superannuation is taxed: Super for beginners guide
Super is a very tax-effective vehicle for your retirement savings, but no-one said the taxation of super was simple. Here’s a quick overview of what you pay and when.
Your tax guide to accessing your super over age 60
Once you turn 60 and start withdrawing your super, the tax advantages of the super system come into play.
Your tax guide to accessing your super under age 60
If you’re eligible and thinking about tapping into your super before you turn 60, it’s worth checking the tax implications first. In some cases, you may be better holding off for a while.
SMSFs
SMSF estate and succession planning: What’s the difference?
When planning who gets what when you die, many people forget about their SMSF. It’s not just about the distribution of fund assets, but who’s in control.
Real DIY super: How to keep SMSF costs super low
If you’re prepared to do a lot of the grunt work yourself, running your own super fund need not be costly.
ETFs: How do I use them and what do they cost?
Exchange-traded funds have exploded in popularity in recent years as an efficient, cost-effective way to build a portfolio, with new funds launched almost monthly.
Non-arm’s length expenditure: NALE
Don’t know your NALE from your NALI? Failure to attend to both can lead to some gnarly tax outcomes.
Multigenerational SMSFs: Benefits and pitfalls
Now that six-member SMSFs are allowed, the question remains; should family members join forces or go their separate ways?
RETIREMENT PLANNING
Independent financial advice: Why it’s important and how to find it
Most people would expect the financial advice they receive is independent and free of conflicts of interest, but that is not always the case. Here’s what to look for.
What happens when you meet a financial adviser
Getting good financial advice can make a big difference to your financial position, but before you take the plunge make sure you understand what’s involved.
Recontribution strategy case study: How superannuation tax components impact estate planning
By withdrawing and recontributing some of your super, you may be able to reduce the amount of tax paid by your beneficiaries. Here’s how it works.
AGE PENSION
Age Pension rates (March 2024 to September 2024)
Age Pension rates increase on 20 March 2024. This article also explains how the Age Pension works, and includes the latest Age Pension rates for residents, non-residents, and the transitional Age Pension.
Age Pension Work Bonus: How it works and case studies
Recent changes mean Age Pensioners can work and earn additional income to ease cost of living pressures without impacting their pension.
Age Pension income test rules (from March 2024)
A common question for those nearing or in retirement is “How much can a pensioner earn before it affects the pension?”.
Age Pension assets test rules (from March 2024)
This article details the rules and limits of the Age Pension assets test (how much your savings and other assets are worth), which is one half of the means test (along with the income test) that determines how much Age Pension you could be eligible for.
Age Pension calculator (March 2024 update)
Our Age Pension calculator gives you an estimate of your potential Age Pension entitlements for the period 20 September 2023 to 19 March 2024.
Quiz: Age Pension rules
Take our 10-question quiz to test your knowledge on the Age Pension rules.