retirement

Retirement income review consultation paper released (debating to follow)

Treasury has released a consultation paper on the retirement income review (or click here for a PDF version). The independent review, recommended by the Productivity Commission, established a panel that has been tasked with establishing a fact base — that is, it will not be making “recommendations”. The review is intended to help improve understanding

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Genuine redundancy & early retirement

A change to the tax law, applying from 1 July 2019, has just passed Federal Parliament in relation to genuine redundancy payments and early retirement scheme payments.  Now, such payments can be made up to a person’s pension age, rather than the previous age of 65.  This will benefit older employees who leave, in some

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Drawdown rates: Too high, too low, about right?

Once one of your clients starts a pension, there is a legislated minimum amount required to be paid out each year. There is no maximum amount other than the balance of their super account, unless it is a transition to retirement pension that is not in retirement phase, in which case the maximum amount is

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The SMSF sector is growing by $23,200 every minute

The latest statistical report from APRA has been released (here’s a link to download it), which of course mainly focuses on the APRA-regulated superannuation funds in the retail and industry sectors. But the APRA statistics also make passing mention of ATO-regulated funds, the SMSF sector, which from June 2018 to June 2019 grew in total

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More of us are lining up to retire, despite shrinking savings

A Roy Morgan survey conducted over calendar 2018, and published in the second quarter of 2019, indicates that the number of people intending to retire within a year had increased by 6% on the previous year’s level, and 11% above the 2017 figure. This increase is despite the savings levels of these “intenders” being well

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Event-based reporting mistakes lead to greater scrutiny of SMSF audits

Since event-based reporting (EBR) started for SMSFs from 1 July 2018, the ATO says an unprecedented number of transfer balance cap reports have required re-reporting. The transfer balance account report (TBAR) is used to report certain events and is separate from the SMSF annual return (SAR). The TBAR enables the ATO to record and track

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The long and short of the super downsizer scheme

    Under the superannuation downsizer scheme, from 1 July 2018, people aged 65 and older can make a non-concessional (post-tax) contribution of up to $300,000 from the proceeds of selling what was once their family home. Existing contribution caps and restrictions will not apply to the downsizer contribution. The downsizer scheme was one of

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SG amnesty: Are reports of ATO leniency off the mark?

  The failure of the Superannuation Guarantee Amnesty to pass into law has led to a problem. To recap, the Superannuation Guarantee Amnesty was to be available for the 12-month period from 24 May 2018 to 23 May 2019. To get the benefits of the amnesty (set out below) employers must during this 12-month period

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ATO is scanning for personal services income diverted to SMSFs

  The ATO has announced that it is reviewing arrangements where members of an SMSF (typically at, or approaching, retirement age) purport to divert income earned from their personal services (that is, PSI) to their fund, which results in minimising or even avoiding tax altogether on that income. The ATO says these arrangements typically display

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How much do we need to put aside for retirement?

  How much do you need to retire? When it comes to superannuation and retirement savings, it seems that size really does matter. There are other considerations of course, but for the most part the focus will be on finances when people aim to “improve” their post-work life prospects. The question of how much retirement

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