pensions

Eligibility for tax-deductible super contributions

Submitted by Financial Adviser on Mon, 11/19/2012 - 16:58

Question: I am self-employed and I have never made super contributions in my life. Am I eligible to make super contributions, and can I claim a tax deduction for those super contributions?

Is the Government’s co-contribution included in my contributions cap?

Submitted by Financial Adviser on Mon, 11/19/2012 - 16:55

Question: Does a co-contribution received after using up the total bring forward cap of $450,000 mean that an excess contribution has been made, or is the Government co-contribution excluded from the after-tax contribution cap?

New Rules for SMSF

Submitted by Financial Adviser on Mon, 11/19/2012 - 16:53

SMSF trustees now have to take additional care with respect to the investment strategies of funds and valuation of SMSF assets, as the ATO (Australian Tax Office) has effectuated fresh SMSF rules intended to “address potential risks and strengthen the regulatory framework in which SMSFs operate” since 1 July 2012. The ATO also plans to target a few specific SMSF compliance areas during the financial year of 2012/2013, which means that you would be well advised to conduct a super service on your SMSF right now.

Super contributions after retirement

Submitted by Financial Adviser on Mon, 11/19/2012 - 16:48

Question: If I have retired from work and later on inherit a reasonable sum of cash, can I make a non-concessional contribution into my superannuation fund? OR is that only permitted while I am working, regardless of my age?

Superannuation rights of same-sex couples

Submitted by Financial Adviser on Mon, 11/19/2012 - 16:47

The refusal of the Australian parliament in September 2012 to allow same-sex marriages was undoubtedly disappointing for homosexual couples looking to legalize their commitment. This, however, does not mean that same-sex relationships are considered illegitimate with respect to the superannuation entitlements. In terms of superannuation benefits, homosexual couples have the same or similar rights as married or de facto heterosexual couples, although this was not the case until relatively recently.

Tax-deductible super contributions: how much to claim?

Submitted by Financial Adviser on Mon, 11/19/2012 - 16:39

Question: If I make a personal concessional payment of $25,000 (tax-deductible) and a personal $150,000 non-concessional (non-tax deductible) payment into my SMSF and my personal taxable income for 2012/2013 is $20,000, are there possible tax penalties because I’m claiming $5,000 more than my taxable income, that is, will $5,000 be added to my non-concessional amount thus making it $155,000?

Tax Relief for SMSF Income Streams

Submitted by Financial Adviser on Wed, 11/07/2012 - 16:09

Tax Relief for SMSF Income Streams – Important Announcement

In its 2012-13 Mid Year Economic and Fiscal Outlook, the government has announced it will legislate to allow a tax exemption to continue for the period of time after the death of a pensioner. This important announcement suggest that parts of last year's TR 2011/D3 that indicated a pension would cease following the death of a member, would appear to have become redundant.

More information about this legislative change read below.

Australian superannuation pool grows 17 percent per year

Submitted by Financial Adviser on Tue, 01/31/2012 - 12:48

From Financial Standard:

Australian super assets have rocketed up 17% in annual growth rate in ten years to US$1.3 trillion, or the equivalent of 96% of Australia's GDP, according to the Towers Watson Global Pension Assets Study.

Aged care, Retirement villages and the Family home

Submitted by Financial Adviser on Sat, 01/28/2012 - 14:44

Australia’s ageing population means that more retirees will be faced with the prospect of moving into aged care accommodation. For many, this can be challenging, as there are a range of factors to consider, from the cost of aged care to whether to sell their family home, and how this will impact on their social security entitlements.

Granny flats, Centrelink and Aged care

Submitted by Financial Adviser on Sat, 01/28/2012 - 14:27

As the Australian population continues to age, there is expected to be greater pressure on all areas of society, particularly income support, health and aged care. With many retirees expected to reconsider their accommodation requirements, financial advisers are likely to be faced with greater demand for information on alternative living arrangements. Granny flats are a popular form of aged care accommodation, with a number of social and economic advantages.

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