SolePurposeTest | Superannuation & SMSF news

“No plans” to change increases to Super Guarantee rate: Treasurer

July 16, 2019July 15, 2019

Treasurer Josh Frydenberg has repeated that the Government has “no plans” to change the legislated increases to the Super Guarantee rate. Asked on ABC’s Insiders if the Government was committed to increasing the Super Guarantee rate to 12% by 2025, the Treasurer said: “We have no plans to change that… Read More »

They’ve cut deeming rates, but what are they?

July 16, 2019July 15, 2019

Written by Peter Martin, Crawford School of Public Policy, Australian National University. Treasurer Josh Frydenberg has cut the deeming rate for large investments from 3.25% to 3%, and for smaller ones from 1.75% all the way down to 1%, backdated to the start of July. But what exactly is a… Read More »

Government cuts deeming rates to 1.0% and 3.0%

July 15, 2019July 15, 2019

The Government has cut the age pension deeming rates, following a campaign calling for cuts to the “Pensioner Tax”. Over the weekend the Government announced the lower deeming rate – for financial assets up to $51,800 – would be cut from 1.75% to 1.0%. The higher deeming rate – financial… Read More »

Deeming rates explained. What is deeming, how does it cut pensions, and why do we have it?

July 15, 2019July 12, 2019

Written by Peter Martin, Crawford School of Public Policy, Australian National University. Now it’s the Coalition that’s being accused of a “retiree tax”. As interest rates have come down over the past four years, the rate that retirees are “deemed” to have earned for the purpose of the pension income… Read More »

Morrison must rule out delays to Super Guarantee rate increases: Labor

July 12, 2019July 12, 2019

Labor has called on the Prime Minister to rule out further delays to the legislated increases in the Superannuation Guarantee rate, after reports that backbenchers are agitating for such a delay. Labor’s Shadow Treasurer Jim Chalmers said: “Scott Morrison must rule out calls from his backbenchers to hurt workers saving… Read More »

Increasing Super Guarantee to cost workers $30,000, claim disputed

July 11, 2019July 11, 2019

With the Super Guarantee rate already legislated to go to 12%, and a government review of the retirement income systems likely, a disagreement has broken out over the impact of increasing the SG rate. The Grattan Institute says that increasing the SG rate from 9.5% to 12% will cost a… Read More »

Super shock: more compulsory super would make Middle Australia poorer, not richer

July 11, 2019July 10, 2019

Written by Brendan Coates, Grattan Institute and Owain Emslie, Grattan Institute. Compulsory superannuation was sold to Australians on the basis that it would make us better off. But as the government prepares for an independent inquiry into retirement incomes, new Grattan Institute research finds that increasing compulsory contributions from 9.5%… Read More »

LRBA safe harbour interest rates for 2019/20 up slightly

July 10, 2019July 9, 2019

What is the SMSF Limited Recourse Borrowing Arrangement (LRBA) safe harbour interest rate for 2019/20? What is the SMSF LRBA safe harbour? How is the safe harbour interest rate set? The 2019/20 LRBA safe harbour interest rates are up slightly compared to recent years. The LRBA safe harbour interest rate… Read More »

Super insurance opt-in Bill unlikely to pass before 1 October start date

July 9, 2019July 12, 2019

A Bill to make insurance opt-in for younger people is unlikely to pass before the proposed start date for the measure of 1 October 2019, as it has been sent to a Senate Committee. The Government has introduced the Treasury Laws Amendment (Putting Members’ Interests First) Bill 2019, which is… Read More »

Seniors accuse Coalition of deeming rates “pensioner tax”

July 8, 2019July 15, 2019

National Seniors has called out the Coalition for an “unfair” and “covert” policy to boost the Budget bottom line at the cost of pensioners, with what it’s called a “pensioner tax” through high deeming rates. National Seniors says keeping age pension deeming rates high is a “pensioner tax”, and is… Read More »