Superannuation, the ultimate government cash cow?

[Bellcose]

You closed smsf and went into aus super while i am thinking doing the reverse..

I decided to go that route after assessing many things. The major reason is that while I believe I still have the smarts to administer an SMSF, it will probably come to a point when I won't. I concluded it was better to do the change now. I was also fed up with having to administer the darn thing. It was becoming tedious.

I selected this option in case you are interested.

 

[rolly1]

I stopped insurance thru super so not important for me, but yes, could be a good point
If required, i could still keep a token super amount with the fund

I have done this. When I was an apprentice carpenter, my boss paid into my bussq super for me. I have left that one open purely for the death insurance in it. It is half the price of anything outside of that fund or what I could find myself.
I have been with a few industry super funds over the years. I started with ING Direct but when they raised their fees massively I switched over to Hostplus. I was quite active in changing my asset allocation within that fund but when I realised it takes them two days to action my requests I decided to leave them.
I opened up a SMSF with Stake and have been with them for just over a year now. I have been really impressed with how easy the process has been and all for $990/year plus a few other outside fees everything is done for you. I only trade stuff on the Australian market but if you wanted to you can trade stuff on the US market as well for an extra fee. $3 per trade up to $30,000 value or .01% for orders above that so very cheap brokerage as well.
For an extra yearly fee you can also add residential property, commercial property, managed funds, precious metals, venture capital funds, startups and anything that is allowable in a SMSF investment.

 

[qldfrog]

Food for thoughts, thanks, a process I go thru regularly as circumstances changes on top of the smsf landscape being quite moving as well.
Thanks all for your answers

 

[Bellcose]

food for thoughts, thanks, a process I go thru regularily as circumstances changes on top of the smsf landscape being quite mmoving as well.
Thanks all for your answers

Yes, there can be so much involved. Whether you have a partner or not. Is the other half interesting in the financial aspects? If not, do you want to load them up with managing the payout on death as well as continuing to manage the SMSF? I know some who have set an age target on when to move to an industry fund. It can be exciting setting up an SMSF and buying this or selling that but the mundane should not be completely ignored.

Fun stuff, 'eh?

 

[Knobby22]

I'm too busy with work to go SMSF but it would be nice to do that and retain the Industry Fund with the bulk of the funds. Probably too costly.

 

[SirRumpole]

Do Australia's super tax concessions take from the poor and give to the rich?​

By business reporter Gareth Hutchens

Do Australia's super tax concessions take from the poor and give to the rich?

Australia's super tax concessions will cost the government almost $60 billion in 2025-26, which is $9 billion more than expected. How can we afford it?

www.abc.net.au

 

[qldfrog]

Do Australia's super tax concessions take from the poor and give to the rich?​

By business reporter Gareth Hutchens

Do Australia's super tax concessions take from the poor and give to the rich?

Australia's super tax concessions will cost the government almost $60 billion in 2025-26, which is $9 billion more than expected. How can we afford it?

www.abc.net.au

No, it does not cost Australia, Australia does not steal it, or steal less.
If you consider any tax as a robbery( state can still ask for user pay....) then concessions are just less impost, as for "take from poor"..the ABC in its splendour of entitlement and a way of thinking which is so distorted that many now actually truly believe the above.
Once people believe that some citizen paying more taxes than someone else is fair, both in % and numerically, there is no hope....
How do you dare having more super than me, so unfair..

 

[SirRumpole]

No, it does not cost Australia, Australia does not steal it, or steal less.
If you consider any tax as a robbery( state can still ask for user pay....) then concessions are just less impost, as for "take from poor"..the ABC in its splendour of entitlement and a way of thinking which is so distorted that many now actually truly believe the above.
Once people believe that some citizen paying more taxes than someone else is fair, both in % and numerically, there is no hope....
How do you dare having more super than me, so unfair..

That's one point of view but if we have to spend $200 billion (?) on nuclear reactors or $600 billion (?) on renewables then the money has to come from somewhere.

 

[qldfrog]

That's one point of view but if we have to spend $200 billion (?) on nuclear reactors or $600 billion (?) on renewables then the money has to come from somewhere.

Indeed, the electricity user, per kwh
That might somewhat refresh and clear some minds.
And the less you use the less you pay.
User pay, simple.

 

[divs4ever]

That's one point of view but if we have to spend $200 billion (?) on nuclear reactors or $600 billion (?) on renewables then the money has to come from somewhere.

easy , inspire the super-funds to invest in nuclear reactors , but we don't ' HAVE TO ' we can always go back to the Stone Age and need much less Government nor electricity

remember current currency is only a 'promise to pay on demand ' .. the government can always place the military outside the door of the Treasury/RBA to keep you grasping peasants OUT .

the 'money' is just promises dragged forward from future peasant productivity

 

[rolly1]

That's one point of view but if we have to spend $200 billion (?) on nuclear reactors or $600 billion (?) on renewables then the money has to come from somewhere.

It's an easy fix but no gov has the balls to do it. Get rid of all the outdated taxes like stamp duty etc and raise the gst. It's the most fairest tax of them all. As qldfrog said above it's a user pay system so the more you spend the more you pay, so simple.

 

[farmerge]

It's an easy fix but no gov has the balls to do it. Get rid of all the outdated taxes like stamp duty etc and raise the gst. It's the most fairest tax of them all. As qldfrog said above it's a user pay system so the more you spend the more you pay, so simple.

@rolly1 Unfortunately the GST will never get changed. Whoever moots the idea would be the biggest loser at the next election.

 

[rolly1]

@rolly1 Unfortunately the GST will never get changed. Whoever moots the idea would be the biggest loser at the next election.

They just need a decent PR firm to sell it to the middle and low income earners. And no not how they did it when it first came in with the cake debacle

 

[Value Collector]

It wont matter, a new batch of money coming in next payday and a new group of members being born or getting off a plane every day.
Lol a never ending supply of money, it can't go wrong, can it?

That investment only represents about 0.5% of the funds they manage, members are going to see a difference in their returns.

But, the invest should come right, from what I am reading it isn’t a big issue, delays in the rollout of new towers will eventually be fixed, and then the rental income will kick in.

 

[farmerge]

If memory serves me correctly all the States and Territories have to be unanimous in the GST rate being changed.
I think pigs will fly past the Moon first, before that ever happens.

 

[divs4ever]

They just need a decent PR firm to sell it to the middle and low income earners. And no not how they did it when it first came in with the cake debacle

the flaw with the sales pitch the first time ( for GST ) was the Government wanted to keep ALL the other taxes , instead of replacing them ALL

part of the problem was IF they replaced ALL the other taxes with GST there would be mass redundancies in nearly all government departments , tax office almost completely redundant the folks handling excise ( petrol , tobacco , alcohol etc etc. ) imports and luxury taxes gone as well ,

all those redundant public services would be permanently fatal to the ALP for decades , maybe centuries

until the total population graduate from the retardation centres ( high schools ) some half-indoctrinated person will figure out he/she is being robbed and scream so loudly half of Australia will hear it and explain it explicitly

of course government could cut it's spending by 90% and MAYBE get it across the line