I'm not.
Superannuation, the ultimate government cash cow?
- Thread starter drsmith
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I'm not.
sounds like a good idea to me. I've known of a few who have had issues with receiving super from employers. Far easier to catch and follow up.
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Wow someone found a brain and common sense in the GovernmentA good move by the Government, people get their super paid fortnightly(sic) and the Govt gets the contribution tax fortnightly.
Millions of workers will be thousands of dollars better off in retirement under federal government plans to require all businesses to pay their employees’ superannuation on payday.
Millions to be better off in retirement under compulsory payday super plan
The proposed update to laws that allow businesses to pay super quarterly will also make it tougher for employers not to pay the super guarantee at all.www.theage.com.au
The proposed update to laws that allow businesses to pay super quarterly will also make it tougher for employers not to pay the super guarantee at all – an issue that costs workers billions in unpaid super each year.
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the benefit to the superannuant will be limited by the frequency the fund manager invests the cash ,( not just leaves it in a bank account )
will the fund manager invest monthly under the new plan or let the funds accumulate in the short-term money-market for up to 3 months
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You mean save it from oblivion by not investing it for 3 months....point taken??
In good spirit...
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the Government is putting pressure ( and trying embarrassment ) on super funds to improve returns ( accumulated gains ) to at least beat 'official inflation ' ( so there is subtle nudging to take more risk .. the UK pension funds show how that can go awry )
now having some super contributions a month or two early may give them an opportunity if they are adequately staffed for more active portfolio management , a lazy manager might just inject the cash into a passive index wholesale fund say on a monthly basis
since i hold several fund managers i will be watching to see how they react to the rule changes when they are introduced ( and if FUM outflows reduce or even reverse back to inflows )
The final tranche of assets in accumulation phase sold yesterday. When the cash hits the accounts and after provision made for tax, the funds will be distributed to my children.
Two more draw-downs of account-based pension remaining after which arrangments will be made for a roll-over to an industry fund. So ends the SMSF.
Two more draw-downs of account-based pension remaining after which arrangments will be made for a roll-over to an industry fund. So ends the SMSF.
The 2023 Budget has introduced to Parliament the proposal to tax superannuation fund amounts greater than $3m @ 30% from 1 July 2025.
Just the bare bones at this point obviously so the finer details will be thrashed out as the matter progresses. I also note the following Budget Statement:
"Defined benefit interests will be appropriately valued and will have earnings taxed under this measure in a similar way to other interests to ensure commensurate treatment."
Just the bare bones at this point obviously so the finer details will be thrashed out as the matter progresses. I also note the following Budget Statement:
"Defined benefit interests will be appropriately valued and will have earnings taxed under this measure in a similar way to other interests to ensure commensurate treatment."
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is that 30% per year ?? one would think not .. but then
and a trivial point $3 million in 2025 will not be that much considering a ( nice not a mansion) suburban home can cost a million and $60,000 buys an average new SUV today
If you bothered to read the posts in this thread you may, but only may, gain a greater understanding instead of posting the first blathering thought which springs to your mind.
I had a closer read of the budget announcement. For the first time the reference is to earnings on amounts greater than $3m. There could be some hope it isn't as draconian as the initial Treasury announcement indicated.
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Bad day?
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That is the real issue, a couple of years ago having $400k in super was great, now it is hum hum, in 5 years it will be the the equivalent of having $100k two years ago.
Sad but that is the down side with inflation.
i'd imagine drawing down on your capital for your retirement phase right now would be painful. the inflation + withdrawals would compound the loss.
i still remember about 4-5yrs ago when i said i wanted 1mil in super and the person laughed ... then reminded them what 4% of 1mil would be, and actually how small that would be to live off ... they had a realisation moment on their face and something seemed to clique (penny dropped I guess).
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Yes I always remembered my father retiring in the early 1990's, he was a senior supervisor in a large Govt workshop, he received three years salary as his super payout and thought he was on top of the world.
It was $95k, about 5 years later it was just about worthless, now 30 years later what he earned in three years, my mate the garbo earned in one.
These days I think i'd need more like 2mil, especially since I don't own a house. It's a crazy amount if you think about it.
And yea, is crazy with the value having changed. I'm actually surprised the garbo doesn't earn more!
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Yes the house is more critical IMO.
If you had $2m earning 5%, that's $100k less rent and christ knows what that will be when you've saved $2m, but even today say $500/wk that's $25k/annum. So for all the saving you have $75k to spend.
If you are married the pension is ATM approx $42k, if you had the max allowable $400k super earning 5% =$20k, so that is $62k and you aren't touching the $400k. Plus the perks, medicines, cheap rate, cheap licenses and being special.
Definitely I would recommend giving things some serious thought, because the pension is indexed to cpi, your super isn't, also the rent is linked to cpi, owning your own home saves you money forever.
Having money and super, just makes you feel good about your achievements and being self funded and not a burden, everyone else thinks your a selfish rich prick. ? ? ? ?
Take the easy road, society will appreciate you more, you become special and one of those most deserving.
By the way, the garbo retired a year ago and is loving it, single $1050/fortnight and $250k in super, living the dream.
Actually today we were having a laugh, he was saying he will be getting $350 for electricity from the budget, me and the missus get SFA and he has a better house than us and with his pension and $20k out of super spends more than us. ?
We have booked a cruise holiday in Oct, next April and August 2024, got to get rid of some money and qualify, being frugal has knobs on it.
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QSuper, now part of the Australian Retirement Trust, is closing the self-invest option for new members from next FY.
Could be the start of a trend as I do wonder if there are regulatory risks as well as costs involved in monitoring these particular matters.
Could be the start of a trend as I do wonder if there are regulatory risks as well as costs involved in monitoring these particular matters.
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I know: it is deadful, was actually looking at going into it as sunsuper got swallowedQSuper, now part of the Australian Retirement Trust, is closing the self-invest option for new members from next FY.
Could be the start of a trend as I do wonder if there are regulatory risks as well as costs involved in monitoring these particular matters.
Better half uses sell invest..and pretty good returns so far.but I am afraid the next step will be to close existing accounts
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is owning a house right for you ( it was for me ) , but if you plan to travel in retirement , i have one friend that sends six months a year on cruise liners , others ( now deceased ) went on 'the grey nomad ' path , another migrated to a South Seas island
i am guessing $3 million will not be enough soon assuming you are in solid health
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