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... I guess I was wrong.
Why would you guess that?!
What are they doing to super?
- Thread starter sptrawler
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Why would you guess that?!
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Well not many posters are putting forward questions or hypotheticals.
I thought it would be a popular topic of discussion, many of the members are self funded retirees and pensioners. There are also members aware of the importance of the knowledge that can be gained from people who have walked the path.
However I may have overestimated the interest.LOL Best we keep the discussion topical.
Julia
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Why on earth would anyone be too embarrassed to ask a question about Super? That's why Centrelink have call centres.Yes Julia I am having a hypothetical chat. I am meeting a lot of people who are fast approaching retirement, who have a lot of questions that they are too embarressed to ask. I thought maybe a thread where questions regarding super could be aired, may be worth while. I guess I was wrong.
You may have overestimated the number of self funded retirees on this forum. Or at least those who are prepared to contribute.Well not many posters are putting forward questions or hypotheticals.
I thought it would be a popular topic of discussion, many of the members are self funded retirees and pensioners. There are also members aware of the importance of the knowledge that can be gained from people who have walked the path.
However I may have overestimated the interest.LOL Best we keep the discussion topical.
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Once you decide to commence a pension from your benefits, you must withdraw a minimum percentage of the account each year. However you are never forced to start a pension, and you can have two super accounts, one in pension phase and one in accumulation. Additionally, just because you draw the funds out as a pension, doesn't mean you must spend them.
With regards to Centrelink, as Julia said, call them to check. My understanding is that the answer is Yes, you could contribute to Super and then access a higher benefit via Newstart as Super is not assessed by Centrelink until you reach Age Pension Age, or are drawing a Transition to Retirement Pension (between age 55-65). Depending on your situation this probably is not worth pursuing, because once the funds are in Super they stay there until you qualify to draw a pension. If you're unemployed it generally would not be wise to lock your savings away in Super, as you may require them to meet living expenses until you find a new job!
Non Concessional (after tax) contributions. Anyone under the age of 65 can contribute up to $150,000 per annum or use the 'bring forward' rule to contribute three years worth at once ($450,000). Your employment situation is not relevant for this type of contribution. After turning 65 you must meet the work test to qualify (work 40 hours over any 30 day period for the year). Do not exceed this cap as the penalties are harsh.
Concessional Contributions. The cap is $25,000 per annum (was higher for over 50s in 2011/12, not anymore). This cap includes Super Guarantee (i.e. 9% employer contributions) and Salary Sacrifice. You must be working to make these contributions.
Slight correction in that if you’re self-employed, or even not employed, or you only receive a small proportion of your income from an employer (the 10% rule), then you can make concessional contributions that you claim as a tax deduction in your individual tax return.
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Concessional Contributions. The cap is $25,000 per annum (was higher for over 50s in 2011/12, not anymore). This cap includes Super Guarantee (i.e. 9% employer contributions) and Salary Sacrifice. You must be working to make these contributions.
To be clear about this, I don't think it is the case if you are in a govt non taxed scheme, in this case I don't think there are any limits ?
To be clear about this, I don't think it is the case if you are in a govt non taxed scheme, in this case I don't think there are any limits ?
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Hmmm, I haven't heard anything about that...here's a reference for Concessional Contribution Caps. Click
From memory. Under the previous (now closed) Federal Government Schemes (CSS & PSS) you could not contribute to those schemes via salary sacrifice. Had to use a separate fund. The notional top up to 9% was not counted - I think.
For the current scheme (PSSap) refer to this link
http://www.pssap.gov.au/your-scheme/contributions/#Concessional
Yes the Feds put in 15.4% as opposed to 9% for the rest of the population. This was due to the actuarial arrangements applicable to the CSS/PSS where the employing agency had to make allowance for the amount to be contributed to provide from the end benefit. When the CSS was closed in 1990, the notional amount was 25% of salary and the PSS about 10%. As the mix changed over time it became 16.5% combined and when the PSS closed, the unions accepted the 15.4%. I was well out of all that crap by that stage.
All the above is from a hazy memory. State Government schemes were/are a mish mash and fortunately I did not have to know the ins and outs of them.
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Well I looked everywhere on the ATO site for information regarding the concessional limits for UNTAXED funds, could not find an answer.
Contacted my untaxed fund and was informed that there are NO concessional limits on untaxed funds at the moment (this fin year) , so will just keep pumping it in .
Contacted my untaxed fund and was informed that there are NO concessional limits on untaxed funds at the moment (this fin year) , so will just keep pumping it in .
Are you sure you are not referring to Non-concessional contributions, ie those contributions for which you are not claiming a tax deduction? If so, take care because there are most assuredly limits on these contributions.
http://www.ato.gov.au/super/content.aspx?menuid=0&doc=/content/60489.htm&page=4&H4
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No I am referring to pre-tax salary sacrifice (concessional ) contributions. There have never been any to date on UNTAXED super funds, the link you provided shows TAXED super fund limits. It's just one of those quirks as I'm pretty sure all UNTAXED funds are govt funds.
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This article may shed some light on it
http://www.theaustralian.com.au/bus...per-cap-loophole/story-e6frgac6-1225832331094
http://www.theaustralian.com.au/bus...per-cap-loophole/story-e6frgac6-1225832331094
Now I understand! Thanks.
For the information of others, amounts in these funds are generally only taxed when the benefits are taken out. They are usually defined benefit funds (Constitutionally protected funds) and "concessional" (salary sacrifice) contributions to them, if allowed, are not counted towards the concessional contributions cap. Think of Judges super and those of some pollies. However, non-concessional contributions are counted in that cap I believe.
.
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Looks like self funded retirees below 60 are worse off.
Taxable benefits received as a pension for someone under 60 are taxed at the applicable marginal tax rate but receive a 15 per cent tax offset. Up until June 30, 2012 this meant most people under 60 receiving taxable super pension benefits paid no income tax where their taxable income did not exceed $37,000. On taxable income of between $37,000 and $80,000, tax was effectively paid at 15 per cent.
With new tax rates applying from July 1, 2012, someone under 60 receiving taxable super pension payments can pay tax, after taking account of the 15 per cent tax offset, of 4 per cent up to a total taxable income of $37,000, and 17.5 per cent on taxable income of between $37,000 and $80,000.
Read more: http://www.theage.com.au/money/supe...er-benefits-20120712-21ytw.html#ixzz20fCyTvd1
You have to differentiate between unemployed and self employed.
unemployed - no job
self employed - doing their own business
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I wonder if this push by the super industry has been brought about by the fact they don't have the funds to pay out their obligations. A bit like a ponzi scheme, works o.k while there are more people putting in than taking out.
http://www.theage.com.au/business/p...it-longer-to-access-super-20120802-23icd.html
Is there any wonder that self managed super funds are becomming more popular. Who would trust the super industry to look after your money.
http://www.theage.com.au/business/p...it-longer-to-access-super-20120802-23icd.html
Is there any wonder that self managed super funds are becomming more popular. Who would trust the super industry to look after your money.
Julia
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From the above link:
Different from accessing taxpayer funds with age pension eligibility.
Agree, sptrawler, that Brogden & co. are primarily motivated by what's best for themselves.
Might be good to remember, Mr Brogden, that Super is the individual's own money.
Different from accessing taxpayer funds with age pension eligibility.
Agree, sptrawler, that Brogden & co. are primarily motivated by what's best for themselves.
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Preservation age is being moved Mr Brogden!
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Spot on junior, I don't think it has anything to do with the preservation age. More to do with the fact some funds are going to be found wanting very soon.
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