APRA needs to lift its efforts on regulating the superannuation sector, particularity when it comes to member outcomes, says a capability review of the regulator. One of the recommendations of the Banking and Financial Services Royal Commission was a capability review of APRA. The – in parts scathing – report… Read More »APRA needs to work harder on superannuation: Capability Review
SMSFs dumped blue chip stocks and bought ETFs and infrastructure in 2018/19. SMSF company SuperConcepts says 2018/19 was the “end of an era”, with blue chips dropped due to poor performance. Phil La Greca, SuperConcepts Executive Manger SMSF Technical and Strategic Services, said the financial year 2018/19 “marks the souring… Read More »SMSFs dumped blue chips for ETFs and infrastructure in 2018/19
1,445 potential cases of misuse of SMSF auditor numbers (SAN), across 626 tax professionals, have been reported to the ATO, after the tax office contacted auditors. In March the ATO said is was going to send SMSF auditors lists of the SMSF Annual Returns 2017 that had been lodged with… Read More »1,445 potential cases of SMSF auditor number misuse, ATO finds
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 »“No plans” to change increases to Super Guarantee rate: Treasurer
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 »They’ve cut deeming rates, but what are they?
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 »Government cuts deeming rates to 1.0% and 3.0%
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 »Deeming rates explained. What is deeming, how does it cut pensions, and why do we have it?
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 »Morrison must rule out delays to Super Guarantee rate increases: Labor
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 »Increasing Super Guarantee to cost workers $30,000, claim disputed
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 »Super shock: more compulsory super would make Middle Australia poorer, not richer