Superannuation
Welcome to the About Seniors Superannuation page. We are constantly updating our Superannuation News page with the latest government and industry updates. Did you know there is over 5 billion dollars in unclaimed superannuation with roughly 1 in 2 Australians losing out, Find your super money now!
Are you finding your managed industry super fund is not performing? Why not try a Self Managed Super Fund? It is easier to set up than it sounds!
67 before you get your super!
Hidden behind the budget news is the recommendation, apparently in the finally released Harmer Review and also the Henry review, to increase the age (from 55 to 67) at which super can be accessed. What will this mean?
Find your super
With more than five million unclaimed superannuation accounts reported, roughly one in two working Australians are losing out. During 2006/07 managers of unclaimed superannuation sitting in Eligible Rollover Funds made $1million in fees, based on $5.65 billion remaining in ERFs. Despite increased media coverage to highlight the issue of unclaimed superannuation, the amount continues to grow year-on-year. Find your super money now!
Clarifying super rules
In July 2009, the Government implemented changes to superannuation concession contributions. With hefty tax implications for excessive contributions above the new levels, it’s important to understand how much salary you can sacrifice.
From July 2009, the new limits on how much can be contributed to superannuation at a preferential tax rate are as follows:
§ $25 000 per annum (indexed) for those under 50 years of age, and
§ $50 000 per annum (not indexed), for contributions made before 30 June 2012 if they are at least 50 years of age at the end of a financial year.
This means that an individual under 50 can contribute up to $25,000, including statutory employer contributions, and have this amount taxed at 15per cent once it enters a superannuation fund. If you contribute more than $25,000, this amount will be taxed at an addition 31.5per cent so that the total amount of tax withheld on contributions is equal to 46.5 per cent – the highest marginal tax bracket plus Medicare levy. The same tax amounts will also be applied to contributions over $50,000 for those who qualify for this amount.
Keeping this in mind, it is worthwhile checking with your super fund the amount of contributions you are making and how they are being taxed. For more information on superannuation tax rates, visit the Australian Federal Government website.
Simpler super
ASIC has released a Regulatory Guide 200 Advice which means super fund trustees and financial advisers are now able to offer more information and advice to members about that members own savings. Put simply, this should make it much easier for members to receive no-cost updates on their super savings.
This move, announced by Minister for Financial Services, Superannuation and Corporate Law, Chris Bowen and the Minister for Finance and Deregulation, Lindsay Tanner, means basic financial advice pertaining to a member’s superannuation should now be both accessible and affordable, if not free. It should be noted this change applies to “intra” fund investments and related insurance and does NOT cover advice about switching funds or general retirement planning. To read the fine print, visit the ASIC website here
